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VDO+ Tag:Question 12 Chapter 14 of Class 12 Part – 2 – 2024
12. (Current Ratio & Quick Ratio & Conclusion) Following is the balance sheet of XYZ Ltd. As of 31st March 2018.
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Video Tag:| Balance Sheet | ||
| Particular | Note No. | ₹ |
| I. Equity and Liabilities | ||
| Shareholders’ Funds | ||
| Equity Share Capital | 24,000 | |
| 2,400 shares of ₹10 each fully paid up | ||
| Reserves and Surplus | ||
| Statement of Profit and Loss | 6,000 | |
| Non-Current Liabilities | ||
| Long-term Borrowing : | ||
| 10% Debentures | 15,000 | |
| Current Liabilities | ||
| Trade Payable | 23,400 | |
| Provisions | ||
| Provision for Taxation | 600 | |
| 69,000 | ||
| II. Assets : | ||
| Non-Current Assets | ||
| Tangible Assets | ||
| Machinery and Equipment | 45,000 | |
| Current Assets | ||
| Inventory | 12,000 | |
| Trade Receivable | 9,000 | |
| Prepaid Expenses | 720 | |
| Cash at Bank | 2,280 | |
| 69,000 |
The solution of Question 12 Chapter 14 of Class 12 Part – 2 – 2024: –
| Current Assets | = | Inventory + Trade Receivable + Prepaid Expenses + Cash at Bank |
| = | ₹ 12,000 + ₹ 9,000 + ₹ 2,280 + ₹ 720 | |
| Current Assets | = | ₹ 24,000 |
| Current Liabilities | = | Trade payable Provision for taxation |
| = | ₹ 23,400 + ₹ 600 | |
| Current Liabilities | = | ₹ 24,000 |
| Current Ratio= | Current Assets |
| Current Liabilities |
| Current Ratio | = | ₹ 24,000 |
| ₹ 24,000 | ||
| = | 1: 1 |
| Quick Assets | = | Trade receivables + Cash |
| = | ₹ 9,000 + ₹ 2,280 | |
| Quick Assets | = | ₹ 11,280 |
| Current Liabilities | = | ₹ 24,000 |
| Quick Ratio | = | Quick Assets |
| Current Liabilities | ||
| = | ₹ 11,280 | |
| ₹ 24,000 | ||
| Quick Ratio | = | 0.47 : 1 |
Conclusion:-
Current Ratio (1:1)
The situation is not good because the current assets are equal or sufficient to pay current liabilities.
Liquid Ratio
This is also no so good because there is not margin in liquid assets for the current liabilities of the business.
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication