Question 32 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 32 Chapter 4 of +2-B

 

Question 32 Chapter 4 of +2-B

32. From the following calculate: (Current Ratio; and (ii) Quick Ratio:

  Amount   Amount
Total Debts  6,00,000 Long-term Borrowings 2,00,000
Total Assets  8,00,000 Long-term Provisions  2,00,000
Fixed Assets( Tangible) 3,00,000 Inventories  95,000
Non-current investment 50,000 Prepaid Expenses 5,000
Long-term loans and Advances 50,000    

 

 

The solution of Question 32 Chapter 4 of +2-B: –

Current Assets = Inventory + Trade Receivables + Cash and Cash Equivalents
  =  8,00,000 – 3,00,000 – 50,000 – 50,000
Current Assets = Rs. 4,00,000
Current Liabilities = Total Debt – Non-Current Liabilities
  =  6,00,000 – 2,00,000 – 2,00,000
Current Liabilities = Rs. 20,000
Quick Assets = Current Assets – Inventories – Prepaid Expenses
  =  4,00,000 – 95,000 – 5,000
Liquid Assets = Rs. 3,00,000

 

Current Ratio Current Assets = Rs.4,00,000
Current Liabilities Rs.2,00,000
  = 2: 1    

 

Liquid Ratio Liquid Assets = Rs.3,00,000
Current Liabilities Rs.2,00,000
  = 1.5: 1    

 

 

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)

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T.S. Grewal’s Analysis of Financial Statements

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