Question 21 Chapter 4 of +2-B
Table of Contents
Current Ratio and Quick Ratio
21. X Ltd. has Current Ratio of a 4.5: 1 and Quick Raito of 3: 1. If its inventory is Rs. 36,000, find out its total Current Assets and Total Current Liabilities.
The solution of Question 21 Chapter 4 of +2-B: –
| Current Ratio | = | Current Assets | = | 4.5 |
| Current Liabilities | 1 |
| Quick Ratio | = | Quick Assets | = | 3 |
| Current Liabilities | 1 |
| Inventories | = | 36,000 |
| Let Current Liabilities | = | x |
| Current Assets | = | 4.5x |
| Quick Assets | = | 3x |
| Inventories | = | Current Assets – Quick Assets |
| Rs. 36,000 | = | 4.5x – 3x |
| Rs. 36,000 | = | 1.5x |
| x | = | Rs. 24,000 |
| Current Liabilities | = | x = Rs. 24,000 |
| Current Assets | = | 4.5 x Rs.24,000 |
| = | Rs. 1,08,000 |
| Quick Assets | = | 3 x Rs. 24,000 |
| = | Rs. 72,000 |
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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
