Question 62 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021
Table of Contents
62. From the following balance sheet of X Ltd. As on 31st December 2000, calculate and comment on (I) the liquidity and (ii) solvency ratio of the fix.
| Liabilities | Amount | Assets | Amount |
| Share capital | 5,00,000 | Fixed assets | 6,00,000 |
| Long term-liabilities | 2,50,000 | Current assets | 4,00,000 |
| Current liabilities | 2,50,000 | ||
| 10,00,000 | 10,00,000 |
The solution of Question 62 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –
| (i) Liquidity ratio | = | (current ratio) |
| = | Current asses | |
| Current liabilities |
| = | 4,00,000 | |
| 2,50,000 | ||
| = | 1.6 : 1 |
Comment: the company financial position is moderate. it should try to improve its financial condition by paying off liabilities.
| (ii) solvency ratio | = | (Debt equity ratio) |
|
|
= | long term liabilities |
| shareholders funds |
|
|
= | 2,50,000 |
| 5,00,000 | ||
|
|
= | 0.5 : 1 |
Comment: the company is less under debt. Its collection is good as capital is doubt than debts.
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Accounting Ratios – Meaning and Definition
Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Company Accounts (Issue of Debentures)
- Chapter No. 3 – Company Accounts (Redemption of Debentures)
- Chapter No. 4 – Financial Statements of a Company
- Chapter No. 5 – Financial Statement Analysis
- Chapter No. 6 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
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