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

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

Comment if you have any question.

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. 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

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