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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

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Question 16 Chapter 4 of +2-B

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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

 

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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: –

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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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