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

Question 16 Chapter 4 of +2-B
Question No. 16 - Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 16 Chapter 4 of +2-B

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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

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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)

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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