Question
21:
Umesh Ltd. has Current Ratio of 4.5 : 1 and a Quick Ratio of 3 : 1. If its inventory is ` 36,000, find out its total Current Assets and total Current Liabilities.
Answer:
Current ratio= Current assets/Current liabilities=4.5/1
Quick ratio= Quick assets/Current liabilities=3/1
Inventory = 36,000
Let Current Liabilities be = x
Current Assets = 4.5x
Quick Assets = 3x
Stock = Current Assets − Quick Assets
36,000 = 4.5x − 3x
x = 24,000
Current Assets = 4.5x = 4.5 × 24,000 = 1,08,000
Liquid Assets= 3x = 3 × 24,000 = 72,000
Question
22:
Current Ratio 4; Liquid Ratio 2.5; Inventory ` 6,00,000. Calculate Current Liabilities, Current Assets and Liquid Assets.
Answer:
Current ratio= Current assets/Current liabilities=4/1
Liquid ratio= Liquid assets/Current liabilities=2.5/1
Inventory = 6,00,000
Let Current Liabilities be = x
Current Assets = 4x
Quick Assets = 2.5x
Stock = Current Assets − Quick Assets
6,00,000 = 4x − 2.5x
x = 4,00,000
Current Assets = 4x = 4 × 4,00,000 = 16,00,000
Liquid Assets = 2.5x = 2. 5× 4,00,000 = 10,00,000
Question
23:
Current Liabilities of a company are `1,50,000. Its Current Ratio is 3 : 1 and Acid Test Ratio (Liquid Ratio) is 1 : 1. Calculate values of Current Assets, Liquid Assets and Inventory.
Answer:
Current ratio= Current assets/Current liabilities=3/1
Acid test ratio= Liquid assets/Current liabilities=1/1
Current Liabilities = 1,50,000
Current Assets = 3 × Current Liabilities
= 3 × 1,50,000 = 4,50,000
Liquid Assets = 1 × 1,50,000 = 1,50,000
Inventory = Current Assets − Liquid Assets
= 4,50,000 − 1,50,000 = 3,00,000
Question
24:
Xolo Ltd.'s Liquidity Ratio is 2.5 : 1. Inventory is ` 6,00,000. Current Ratio is 4 : 1. Find out the Current Liabilities.
Answer:
Current ratio= Current assets/Current liabilities=4/1
Quick ratio= Quick assets/Current liabilities=2.5/1
Let the Current Liabilities be = x
Current Assets = 4x
Quick Assets = 2.5x
Stock = Current Assets − Quick Assets
6,00,000 = 4x − 2.5x
or, x = 4,00,000
Current Liabilities = x = ` 4,00,000
Question
25:
Current Assets of a company is are ` 5,00,000. Its Current Ratio is 2.5 : 1 and Quick Ratio is 1 : 1. Calculate value of Current Liabilities, Liquid Assets and Inventory.
Answer:
Current ratio= Current assets/Current liabilities=2.5/1
Quick ratio= Liquid assets/Current liabilities=1/1
Current Assets = 5,00,000
Current ratio= Current assets/Current liabilities=5,00,000/2.5=2,00,000
Liquid Assets = Current Liabilities × 1 = 2,00,000
Inventory = Current Assets − Quick Assets
= 5,00,000 − 2,00,000 = 3,00,000
Class : 12th | Ts Grewal solution 2022-2023
Volume 3 | Chapter 4: Accounting Ratio
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