Analysis Of
Financial Statements
Ts Grewal 20212022 for Class 12 Commerce Accountancy
Chapter 4  Accounting Ratios
Page No
4.101:
Question
1:
From the following compute Current Ratio:

` 


` 
Trade Receivable (Sundry Debtors) 
1,80,000 

Bills Payable 
20,000 
Prepaid Expenses 
40,000 

Sundry Creditors 
1,00,000 
Cash and Cash Equivalents 
50,000 

Debentures 
4,00,000 
Marketable Securities 
50,000 

Inventories 
80,000 
Land and Building 
5,00,000 

Expenses Payable 
80,000 
Answer:
Current
Assets = Trade Receivables + Prepaid Expenses + Cash and Cash Equivalents + Marketable
Securities + Inventories
=
` 1,80,000 + ` 40,000 + ` 50,000 + 50,000 + 80,000
= ` 4,00,000
Current
Liabilities = Bills Payable + Sundry Creditors + Expenses Payable
= ` 20,000 + ` 1,00,000 + ` 80,000
= `
2,00,000
Current ratio= Current assets/Current liabilities
=4,00,000/2,00,000
=2:1
Page No
4.101:
Question
2:
Calculate Current Ratio from the following information:
Particulars 
` 
Particulars 
` 

Total
Assets 
10,00,000 
Noncurrent
Liabilities 
2,60,000 

Fixed
Tangible Assets 
5,00,000 
Noncurrent
Investments 
3,00,000 

Shareholders'
Funds 
6,40,000 









Answer:
Total
Assets = Fixed Tangible Assets + Non  Current Investments + Current Assets
10,00,000 = 5,00,000 + 3,00,000 +
Current Assets
Current Assets = 10,00,000 – 8,00,000 = ` 2,00,000
Total Assets = Shareholder’s Funds + Non – Current Liabilities + Current Liabilities
10,00,000 = 6,40,000 + 2,60,000 +
Current Liabilities
Current Liabilities = 10,00,000 – 9,00,000 = ` 1,00,000
Page
Current ratio= Current assets/Current
liabilities=1,00,000/50,000=2:1
Page No
4.101:
Question
3;
Current Assets `10,00,000, Inventories `5,00,000, Working capital `6,00,000, Calculate
Current Ratio.
Answers;
Current
liabilities = Current Assets Working capital
Current
liabilities = 10,00,000
 6,00,000 =4,00,000
Current ratio= Current Assets/
Current liabilities
Current ratio= 10,00,000/4,00,000= 2.5:1
Page No
4.101:
Question
4:
Trade Payables ` 50,000, Working
Capital ` 9,00,000, Current Liabilities ` 3,00,000.
Calculate Current Ratio.
Answer:
Working Capital
= Current Assets  Current Liabilities
9,00,000 = Current Assets − 3,00,000
Current Assets
= 9,00,000 + 3,00,000 = ` 12,00,000
Current Ratio=CurrentAssets/CurrentLiabilities=12,00,000/3,00,000=4:1
Page No
4.101:
Question
5:
Working Capital `6,00,000, Total Debt
`27,00,000,
NonCurrent liabilities `24,00,000. Calculate Current Ratio.
Answers;
Current liabilities=Total Debt
NonCurrent liabilities
Current liabilities=27,00,00024,00,000=3,00,000
Current Assets= Current
liabilities+ Working Capital
Current Assets=3,00,000+6,00,000=9,00,000
Current ratio= Current Assets/
Current liabilities
Current ratio=9,00,000/3,00,000=3:1
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