Question 5 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 5 Chapter 4 of +2-B

Question 5 Chapter 4 of +2-B

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= 2,70,000
90,000


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)

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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2 Book 3 min 225x300 - Question 5 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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