Question 16 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 16 Chapter 4 of +2-B

Question 16 Chapter 4 of +2-B

Current Ratio and Quick Ratio

16. Quick Assets Rs. 1,50,000; Inventories (Stock) 40,000; Prepaid Expenses Rs. 10,000; Working Capital Rs. 1,20,000.Calculate Current Ratio.

 

The solution of Question 16 Chapter 4 of +2-B: –

Quick Assets = Rs.1,50,000
Inventory = Rs.40,000
Prepaid Expenses = Rs.10,000
Current Assets = Quick Assets + Inventory + Prepaid Expenses
  = Rs.1,50,000 + Rs.40,000 + Rs.10,000
  = Rs.2,00,000

 

Working Capital = Current Assets – Current Liabilities
Rs.1,20,000 = Rs.2,00,000 – Current Liabilities
Current Liabilities = Rs.80,000
Current Ratio = Current Assets
Current Liabilities
  = 2,00,000
80,000

Quick Ratio or Liquid Ratio=2.5 : 1

 

Balance Sheet: Meaning, Format & Examples

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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)

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

2 Book 3 min 225x300 - Question 16 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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