Question 20 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 20 Chapter 4 of +2-B

Question 20 Chapter 4 of +2-B

Current Ratio and Quick Ratio

20. X Ltd. has Current Ratio of a 3.5: 1 and Quick Raito of 2: 1. If the
Inventories are Rs. 24,000; calculate total Current Liabilities and Current
Assets.

 

The solution of Question 20 Chapter 4 of +2-B: –

Current Ratio = Current Assets = 3.5
Current Liabilities 1

 

Quick Ratio = Quick Assets = 2
Current Liabilities 1

 

Let Current Liabilities = x
Current Assets = 3.5x
Quick Assets = 2x
Inventories = Current Assets – Quick Assets
Rs. 24,000 = 3.5x – 2x
Rs. 24,000 = 1.5x
x = Rs. 16,000
Current Liabilities = X = Rs. 16,000

 

Current Assets = 3.5 x Rs.16,000
  = Rs. 56,000


 

Balance Sheet: Meaning, Format & Examples

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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)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 20 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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