Question 16 Chapter 4 of +2-B – USHA Publication 12 Class

Question 16 Chapter 4 of +2-B

Question 16 Chapter 4 of +2-B

I. Liquidity Ratios

16. (Quick Ratio given ) Quick ratio 1.5, Current Assets ₹ 1,00,000; Current Liabilities ₹ 40,000. Calculate the value of Inventory.

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

Solution: – (a)

Current Ratio = 1.5 : 1

 

Current Assets = Current Assets
  Current Liabilities
Current Liabilities = ₹ 1,00,000
  ₹ 40,000
  = 2.5: 1

 

Inventories = Current Assets –Quick Assets
Quick Assets* = ₹ 40,000 X 1.5
  = ₹ 60,000
Inventories = ₹ 1,00,000 – ₹ 60,000
  = ₹ 40,000

* Quick Ratio is 1.5: 1 shows that quick assets are 1.5 times of current liabilities.

What are Liquidity Ratios – Formulas and Examples

 

Comment if you have any question.

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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