Question 23 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 23 Chapter 4 of +2-B

Question 23 Chapter 4 of +2-B

Current Ratio and Quick Ratio

23. Current Liabilities of a company are Rs. 1,50,00. Its Current Ratio is 3 : 1
and Acid Test Ratio (Liquid Ratio) is 1: 1. Calculate values of Current Assets, Liquid Assets and Inventory.

 

The solution of Question 23 Chapter 4 of +2-B: –

Current Ratio = Current Assets = 3
Current Liabilities 1

 

Liquid Ratio = Liquid Assets = 1
Current Liabilities 1
Current Liabilities = Rs. 1,50,000
Current Assets = 3 x Current Liabilities
3 x 1,50,000 = Rs. 4,50,000
Liquid Assets = 1 x Rs.1,50,000
  = Rs. 1,50,00
Inventories = Current Assets – Liquid Assets
  = Rs. 4,50,000 – 1,50,000
  = Rs. 3,00,000

 

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)

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

2 Book 3 min 225x300 - Question 23 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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