Question 18 Chapter 4 of +2-B – USHA Publication 12 Class

Question 18 Chapter 4 of +2-B

   Question 18 Chapter 4 of +2-B

I. Liquidity Ratios

18. (Maintaining between Current Ratio) The ratio of Current Assets (₹ 6,00,000) to Current
Liabilities is 1.5: 1. The accountant of this firm is interested in maintaining a current ratio of 2: 1 by paying some part of the Current Liabilities. You are required to suggest to him the number of current liabilities which must be paid for this purpose.

 

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

Current Assets = ₹ 6,00,000
  = 1.5 : 1
Current Liabilities = ₹ 6,00,000 1
1.5
Let assume Current Liabilities paid = ₹ x
New Current Assets = ₹ 6,00,000 – x
New Current Liabilities = ₹ 4,00,000 – x
New Current Ratio = Current Assets
Current Liabilities
2 : 1 = ₹ 6,00,000 – x
  ₹ 4,00,000 – x
₹ 6,00,000 – x = (₹ 4,00,000 –x) x 2
₹ 6,00,000 – x = ₹ 8,00,000 – 2x
2x – x = ₹ 8,00,000 – ₹ 6,00,000
x = ₹ 2,00,000
Current Liabilities = ₹ 2,00,000

 

 

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 18 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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