Question 20 Chapter 4 of +2-B – USHA Publication 12 Class

Question 20 Chapter 4 of +2-B
Q-20- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 20 Chapter 4 of +2-B

I. Liquidity Ratios

20. A firm had current assets of ₹ 2,00,000. It then paid a current liability of ₹ 50,000. After this payment the current ratio was 2 : 1. Determine the size of current liabilities and working capital after and before the payment was made.

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

Current Assets before payment = ₹ 2,00,000
Current Liabilities paid = ₹ 50,000
Current Assets after payment of Current Liabilities = ₹ 1,50,000
Current Ratio after payment current liabilities = 2 : 1
Current Assets = 1,50,000 or 2
Current Liabilities = ₹ 1,50,000
2
Current Liabilities = ₹ 75,000
  = ₹ 75,000 + ₹ 50,000
Current Liabilities before payment = ₹ 1,25,000

Working Capital

Before payment of Current Liabilities

Working Capital = Current Assets – Current Liability
  = ₹ 2,00,000 – ₹ 1,25,000
  = ₹ 75,000

After payment of Current Liabilities

Working Capital = Current Assets – Current Liability
  = ₹ 1,50,000 – ₹ 75,000
  = ₹ 75,000

 

What are Liquidity Ratios – Formulas and Examples

Comment if you have any question.


End of Solution

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Question 09 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 19 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 38 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 58 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 68 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 78 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 88 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 98 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 108 Chapter 4 of +2-B – USHA Publication 12 Class

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Question 118 Chapter 4 of +2-B – USHA Publication 12 Class

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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 8 – Company Accounts (Share Capital)

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Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

Chapter No. 11 – Financial Statements of a Company

Chapter No. 12 – Financial Statement Analysis

Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 14 – Accounting Ratios

Chapter No. 15 – Cash Flow Statement

Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication

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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 1 Class 12 by Unimax Publication

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