Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Advertisement
Advertisement
Advertisement
Advertisement
Get complete step-by-step solutions for USHA Publication Class 12 Part 2 2024 - Chapter No. 14 – Accounting Ratios, USHA 2024 Part 2. Study double-entry system details, practice timed problems, and verify answers directly.
Question 1 Chapter 14 of Class 12 Part – 2 – 2024
I. Liquidity Ratios
1. (Current Ratio) From the following calculate the current ratio.
Balance Sheet of XYZ Company LTD. As of 31st March 2018
| Particular | ₹ |
| I. Equity and Liabilities | |
| Shareholders’ Funds | |
| Share Capital | 21,000 |
| Reserve and Surplus | |
| surplus in Statement of Profit and Loss | 2,500 |
| Reserves | 1,500 |
| Current Liabilities | |
| Short-term Borrowings : | |
| Bank Overdraft | 2,000 |
| Trade Payable | 6,000 |
| 33,000 | |
| II. Assets | |
| Non-Current Assets | |
| Tangible Assets | |
| Fixed Assets (Net) | 17,000 |
| Current Assets | |
| Inventories | 6,200 |
| Trade Receivable | 3,200 |
| Input CGST | 1,500 |
| Input SGST | 1,500 |
| Cash | 3,600 |
| 33,000 |
| Current Assets | = | Inventories + Trade Receivable + Input CGST + Input SGST + Cash |
| = | ₹ 6,200 + ₹ 3,200 + ₹ 1,500 + ₹ 1,500 + ₹ 3,600 | |
| = | ₹ 16,000 |
| Current Liabilities | = | Bank Overdraft + Trade Payable |
| = | ₹ 2,000 + ₹6,000 | |
| = | ₹ 8,000 |
| Current Ratio= | Current Assets |
| Current Liabilities |
| Current Ratio= | |
| 8,000 |
Current Ratio=2:1
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.