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Question 146 Chapter 4 of +2-B
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Table of Contents
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 |
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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 |
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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)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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