Question 146 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 146 Chapter 4 of +2-B

Question 146 Chapter 4 of +2-B

Miscellaneous

146. Calculate Current Ratio, Quick Ratio and Debt to Equity Ratio from the
figures given below:

Particulars Rs
Inventory  30,000
Prepaid Expenses 2,000
Other Current Assets 50,000
Current Liabilities 40,000
12% Debentures 30,000
Accumulated Profits  10,000
Equity Share Capital  1,00,000
Non-current Investments 15,000

 

The solution of Question 146 Chapter 4 of +2-B: –

I

Current Assets = Inventory + Prepaid Expenses + Other Current Assets
  = Rs 30,000 + Rs 2,000 + Rs 50,000
  = Rs 82,000
Current Liabilities = Rs 40,000
Current Ratio = Current Assets
Current Liabilities
Current Ratio = Rs. 82,000
Rs 40,000
  = 2.05 : 1

 

II

Liquid Assets = Current Assets − Inventory − Prepaid Expenses
  = Rs 82,000 − Rs 30,000 − Rs 2,000
  = Rs 50,000
Liquid Ratio = Liquid Assets
Current Liabilities
Liquid Ratio = Rs. 50,000
Rs 40,000
  = 1.25 : 1


III

Long term Debts = Rs 30,000
Equity = Accumulated Profits + Equity Share Capital
  = Rs 10,000 + Rs 1,00,000
  = Rs 1,10,000
Debt Equity Ratio = Debts
Equity
Debt Equity Ratio = Rs. 30,000
Rs 1,10,000
  = 0.27 : 1



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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 146 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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