Question 18 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 18 Chapter 4 of +2-B

Question 18 Chapter 4 of +2-B

Current Ratio and Quick Ratio

18. Working Capital Rs. 3,60,000; Total Debts Rs. 7,80,000; Long-term Debts Rs.6,00,00; Inventories Rs. 1,80,000. Calculate Liquid Ratio.

 

The solution of Question 18 Chapter 4 of +2-B: –

Long-term Debts = Rs. 6,00,000
Total Debts = Rs. 7,80,000
Working Capital = Rs. 3,60,000
Inventories = Rs. 1,80,000
Current Liabilities = Total debts – Long-term Debts
  = Rs. 7,80,000 – Rs.6,00,000
  = Rs. 1,80,000

 

Current Assets = Current Liabilities + Working Capital
  = Rs. 1,80,000 + Rs. 3,60,000
Current Assets = Rs. 5,40,000

 

Quick Assets = Current Assets – Inventories
  = Rs. 5,40,000 – Rs. 1,80,000
Current Assets = Rs. 3,60,000

 

Current Ratio = Quick Assets
Current Liabilities
  = Rs.3,60,000
Rs.1,80,000

Current Ratio= 2 : 1

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

2 Book 3 min 225x300 - Question 18 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.