Question 21 Chapter 4 of +2-B - USHA Publication 12 Class

Question 21 Chapter 4 of +2-B

I. Liquidity Ratios

21. (Current Assets & Working Capital after & before the Acquisition of Stock) A firm had current liabilities of ₹ 1,25,000. It then acquired stock in trade at a cost of ₹ 25,000 on credit. After this acquisition, the current ratio 2 : 1. Determine the size of current assets and working capital after and before the inventories was acquired.

The solution of Question 21 Chapter 4 of +2-B: –

Current Liabilities before purchasing of stock on credit	=	₹ 1,25,000
Stock purchase on credit	=	₹ 25,000
Current Liabilities after the purchase of stock on credit	=	₹ 1,50,000
Current Ratio after the purchase of stock	=	2: 1
If Current Liabilities	=	₹ 1,50,000 or 1
Current Assets	=	₹ 1,50,000 x 2
	=	₹ 3,00,000
Current Assets before Purchase of stock	=	₹ 3,00,000 – ₹ 25,000
	=	₹ 2,75,000

Working Capital

Before Purchase of stock

Working Capital	=	Current Assets – Current Liability
	=	₹ 2,75,000 – ₹ 1,25,000
	=	₹ 1,50,000

After Purchase of stock

Working Capital	=	Current Assets – Current Liability
	=	₹ 2,75,000 – ₹ 1,25,000
	=	₹ 1,50,000

What are Liquidity Ratios – Formulas and Examples

Comment if you have any question.

End of Solution

Advertisement-X

Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 14 – Accounting Ratios Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 01 Chapter 4 of +2-B – USHA Publication 12 Class

Question 02 Chapter 4 of +2-B – USHA Publication 12 Class

Question 03 Chapter 4 of +2-B – USHA Publication 12 Class

Question 04 Chapter 4 of +2-B – USHA Publication 12 Class

Question 05 Chapter 4 of +2-B – USHA Publication 12 Class

Question 06 Chapter 4 of +2-B – USHA Publication 12 Class

Question 07 Chapter 4 of +2-B – USHA Publication 12 Class

Question 08 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 10 Chapter 4 of +2-B – USHA Publication 12 Class

Question 11 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

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

Question 13 Chapter 4 of +2-B – USHA Publication 12 Class

Question 14 Chapter 4 of +2-B – USHA Publication 12 Class

Question 15 Chapter 4 of +2-B – USHA Publication 12 Class

Question 16 Chapter 4 of +2-B – USHA Publication 12 Class

Question 17 Chapter 4 of +2-B – USHA Publication 12 Class

Question 18 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

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

Question 21 Chapter 4 of +2-B – USHA Publication 12 Class

Question 22 Chapter 4 of +2-B – USHA Publication 12 Class

Question 23 Chapter 4 of +2-B – USHA Publication 12 Class

Question 24 Chapter 4 of +2-B – USHA Publication 12 Class

Question 25 Chapter 4 of +2-B – USHA Publication 12 Class

Question 26 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 27 Chapter 4 of +2-B – USHA Publication 12 Class

Question 28 Chapter 4 of +2-B – USHA Publication 12 Class

Question 29 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-X

Question 30 Chapter 4 of +2-B – USHA Publication 12 Class

Question 31 Chapter 4 of +2-B – USHA Publication 12 Class

Question 31 A Chapter 4 of +2-B – USHA Publication 12 Class

Question 32 Chapter 4 of +2-B – USHA Publication 12 Class

Question 33 Chapter 4 of +2-B – USHA Publication 12 Class

Question 34 Chapter 4 of +2-B – USHA Publication 12 Class

Question 35 Chapter 4 of +2-B – USHA Publication 12 Class

Question 36 Chapter 4 of +2-B – USHA Publication 12 Class

Question 37 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 39 Chapter 4 of +2-B – USHA Publication 12 Class

Question 40 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 41 Chapter 4 of +2-B – USHA Publication 12 Class

Question 42 Chapter 4 of +2-B – USHA Publication 12 Class

Question 43 Chapter 4 of +2-B – USHA Publication 12 Class

Question 44 Chapter 4 of +2-B – USHA Publication 12 Class

Question 45 Chapter 4 of +2-B – USHA Publication 12 Class

Question 46 Chapter 4 of +2-B – USHA Publication 12 Class

Question 47 Chapter 4 of +2-B – USHA Publication 12 Class

Question 48 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-X

Question 49 Chapter 4 of +2-B – USHA Publication 12 Class

Question 50 Chapter 4 of +2-B – USHA Publication 12 Class

Question 51 Chapter 4 of +2-B – USHA Publication 12 Class

Question 52 Chapter 4 of +2-B – USHA Publication 12 Class

Question 53 Chapter 4 of +2-B – USHA Publication 12 Class

Question 54 Chapter 4 of +2-B – USHA Publication 12 Class

Question 55 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 56 Chapter 4 of +2-B – USHA Publication 12 Class

Question 57 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 59 Chapter 4 of +2-B – USHA Publication 12 Class

Question 60 Chapter 4 of +2-B – USHA Publication 12 Class

Question 61 Chapter 4 of +2-B – USHA Publication 12 Class

Question 62 Chapter 4 of +2-B – USHA Publication 12 Class

Question 63 Chapter 4 of +2-B – USHA Publication 12 Class

Question 64 Chapter 4 of +2-B – USHA Publication 12 Class

Question 65 Chapter 4 of +2-B – USHA Publication 12 Class

Question 66 Chapter 4 of +2-B – USHA Publication 12 Class

Question 67 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 69 Chapter 4 of +2-B – USHA Publication 12 Class

Question 70 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 71 Chapter 4 of +2-B – USHA Publication 12 Class

Question 72 Chapter 4 of +2-B – USHA Publication 12 Class

Question 73 Chapter 4 of +2-B – USHA Publication 12 Class

Question 74 Chapter 4 of +2-B – USHA Publication 12 Class

Question 75 Chapter 4 of +2-B – USHA Publication 12 Class

Question 76 Chapter 4 of +2-B – USHA Publication 12 Class

Question 77 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 79 Chapter 4 of +2-B – USHA Publication 12 Class

Question 80 Chapter 4 of +2-B – USHA Publication 12 Class

Question 81 Chapter 4 of +2-B – USHA Publication 12 Class

Question 82 Chapter 4 of +2-B – USHA Publication 12 Class

Question 83 Chapter 4 of +2-B – USHA Publication 12 Class

Question 84 Chapter 4 of +2-B – USHA Publication 12 Class

Question 85 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 86 Chapter 4 of +2-B – USHA Publication 12 Class

Question 87 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 89 Chapter 4 of +2-B – USHA Publication 12 Class

Question 90 Chapter 4 of +2-B – USHA Publication 12 Class

Question 91 Chapter 4 of +2-B – USHA Publication 12 Class

Question 92 Chapter 4 of +2-B – USHA Publication 12 Class

Question 93 Chapter 4 of +2-B – USHA Publication 12 Class

Question 94 Chapter 4 of +2-B – USHA Publication 12 Class

Question 95 Chapter 4 of +2-B – USHA Publication 12 Class

Question 96 Chapter 4 of +2-B – USHA Publication 12 Class

Question 97 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 99 Chapter 4 of +2-B – USHA Publication 12 Class

Question 100 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 101 Chapter 4 of +2-B – USHA Publication 12 Class

Question 102 Chapter 4 of +2-B – USHA Publication 12 Class

Question 103 Chapter 4 of +2-B – USHA Publication 12 Class

Question 104 Chapter 4 of +2-B – USHA Publication 12 Class

Question 105 Chapter 4 of +2-B – USHA Publication 12 Class

Question 106 Chapter 4 of +2-B – USHA Publication 12 Class

Question 107 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 109 Chapter 4 of +2-B – USHA Publication 12 Class

Question 110 Chapter 4 of +2-B – USHA Publication 12 Class

Question 111 Chapter 4 of +2-B – USHA Publication 12 Class

Question 112 Chapter 4 of +2-B – USHA Publication 12 Class

Question 113 Chapter 4 of +2-B – USHA Publication 12 Class

Question 114 Chapter 4 of +2-B – USHA Publication 12 Class

Question 115 Chapter 4 of +2-B – USHA Publication 12 Class

Advertisement-Y

Question 116 Chapter 4 of +2-B – USHA Publication 12 Class

Question 117 Chapter 4 of +2-B – USHA Publication 12 Class

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

Advertisement-X

Question 119 Chapter 4 of +2-B – USHA Publication 12 Class

Question 120 Chapter 4 of +2-B – USHA Publication 12 Class

Question 121 Chapter 4 of +2-B – USHA Publication 12 Class

Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.

Thanks again.

End of Post

Download a PDF of Chapter No. 14 – Accounting Ratios:

If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.

Download Now From our Store

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)

Advertisement-X

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

Check out Part 1 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

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