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Question 18 Chapter 4 of +2-B
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Table of Contents
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 | X | 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 |
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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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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