Question 5 Chapter 4 of +2-B
Table of Contents
Current Ratio and Quick Ratio
5. Working Capital Rs. 1,80,000; Total Debts Rs. 3,90,000; Long-term Debts Rs.
3,00,000. Calculate Current Ratio.
Hint: 1. Current Liabilities = Total Debts-Long-term Debts.
2. Current Assets = Working Capital + Current Liabilities.
The solution of Question 5 Chapter 4 of +2-B: –
Total Debts | =Rs. 3,90,000 |
Long-term Debts = | Rs. 3,00,000 |
Current Liabilities= | Total Debts – Long-term Debts |
Rs. 3,90,000 – Rs. 3,00,000 |
Rs.90,000 |
Working Capital | =Current Assets – Current Liabilities |
Rs. 1,80,000= | Current Assets – Rs. 90,000 |
Current Assets | Rs. 1,80,000 – Rs. 90,000 |
Rs.2,70,000 |
Current Ratio= | Current Assets |
Current Liabilities |
Current Ratio= | |
Current Ratio=4:1
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)
- 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
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