Question
16:
From the following information, calculate Liquid Ratio:
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Particulars |
` |
Particulars |
` |
|||
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Current Assets |
2,00,000 |
Trade
Receivables |
1,10,000 |
|||
|
Inventories |
50,000 |
Current
Liabilities |
70,000 |
|||
|
Prepaid
Expenses |
10,000 |
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|
|||
|
|
|
|
|
|
|
|
Answer:
Quick
Assets or Liquid Assets = Currents Assets – Inventories – Pre-paid Expenses
= ` 2,00,000 – ` 50,000 – ` 10,000 = ` 1,40,000
Current Liabilities = ` 70,000
Current ratio= liquid assets or quick assets/Current
liabilities=1,40,000/70,000=2:1
Question
17:
Quick Assets `3,00,000; Inventory (Stock) `80,000; Prepaid Expenses `20,000; Working Capital `2,40,000. Calculate Current Ratio.
Answer:
Current Assets= Quick Assets +Inventory (Stock) +Prepaid Expenses
Current Assets= 3,00,000+ 80,000+20,000
Current Assets= 4,00,000
Current Liabilities = Current Assets- Working Capital
Current Liabilities = 4,00,000 - 2,40,000
Current Liabilities = 1,60,000
|
Current Ratio |
= |
Current Assets/ Current Liabilities |
|
Current Ratio |
= |
4,00,000/1,60,000 |
|
Current Ratio |
= |
2.5 :1 |
Question
18:
Current Assets `6,00,000; Inventories `1,20,000; Working Capital `5,04,000. Calculate Quick Ratio.
Answer:
|
Quick Assets |
= |
Current Assets + Inventories |
|
|
= |
6,00,000 - 1,20,000 |
|
Quick Assets |
= |
4,80,000 |
|
Current Liabilities |
= |
Current Assets- Working Capital |
|
|
= |
6,00,000-5,04,000 |
|
Current Liabilities |
= |
96,000 |
|
Quick Ratio |
= |
Quick
Assets/ Current Liabilities |
|
|
= |
4,80,000/96,000 |
|
|
= |
5/1 = 5:1 |
Question
19:
Current Liabilities of a company are ` 6,00,000. Its Current Ratio is 3 : 1 and Liquid Ratio is 1 : 1. Calculate value of Inventory
Answer:
Current ratio= Quick assets/Current liabilities=3/1
Acid test ratio= Liquied assets/Current liabilities=1/1
Current Liabilities = 6,00,000
Current Assets = 3 × Current Liabilities
= 3 × 6,00,000 = 18,00,000
Liquid Assets = 1 × 6,00,000 = 6,00,000
Inventory = Current Assets − Liquid Assets
= 18,00,000 − 6,00,000 = 12,00,000
Question
20:
Moon Ltd. has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. If the Inventories is ` 24,000; calculate total Current Liabilities and Current Assets.
Answer:
Current ratio= Current assets/Current liabilities=3.5/1
Quick ratio= Quick assets/Current liabilities=2/1
Let Current Liabilities be = x
Current Assets = 3.5 x
Quick Assets = 2 x
Stock = Current Assets − Quick Assets
24,000 = 3.5 x − 2 x
or, 24,000 = 1.5 x
x = 16,000
Current Liabilities = x = ` 16,000
Current Assets = 3.5 x = 3.5 × 16,000 = ` 56,000
Class : 12th | Ts Grewal solution 2022-2023
Volume 3 | Chapter 4: Accounting Ratio
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