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 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
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
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