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

Question 16 Chapter 4 of +2-B
Q-16- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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

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

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