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

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

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