Question 21 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 21 Chapter 4 of +2-B
Question No. 21 - Chapter No.4 - T.S. Grewal +2 Book Part B

Question 21 Chapter 4 of +2-B

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)

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)

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

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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