# 12th | Volume 3 | Chapter:4 | Question No. 16 to 20 | Accounting Ratio | Ts grewal Accounts Solution 2022-2023

#### Question 16:

From the following information, calculate Liquid Ratio:

 Particulars ` Particulars ` Current Assets 2,00,000 Trade Receivables 1,10,000 Inventories 50,000 Current Liabilities 70,000 Prepaid Expenses 10,000

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.

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.

 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

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.

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