हिंदी

A Business Has a Current Ratio of 3 : 1 and Quick Ratio of 1.2 : 1. If the Working Capital is Rs 1,80,000, Calculate the Total Current Assets and Value of Stock. - Accountancy

Advertisements
Advertisements

प्रश्न

 A business has a current ratio of 3 : 1 and quick ratio of 1.2 : 1. If the working capital is Rs 1,80,000, calculate the total Current Assets and value of stock.

उत्तर

`"Current Ratio"= "Current Assest"/"Current Liabilities"=3:1`  

Or,`3/1="Current Assest"/"Current Liabilities"` 

Or, Current Assets = 3 × Current Liabilities

Working Capital = Current Assets − Current Liabilities

Or, 1,80,000 = Current Assets − Current Liabilities

Or, 1,80,000 = 3 Current Liabilities − Current Liabilities

Or, 1,80,000 = 2 Current Liabilities

Or, Current Liabilities = Rs 90,000

∴Current Assets = 3 × 90,000 = Rs 2,70,000 

`"Quick Ratio"="Quick Assets"/"Current Liabilities"` 

Quick Ratio = 1.2 : 1

Quick Assets = Current Assets − Stock

Or, Quick Assets = 90,000 − Stock

Current Liabilities = Rs 90,000 

`1.2/1=(2,70,000-"stock")/(90,000)` 

Or, 1,08,000 = 2,70,000 − Stock

Stock = Rs 1,62,000 

shaalaa.com
Liquidity Ratios
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2009-2010 (March)

APPEARS IN

संबंधित प्रश्न

The current ratio of X. Ltd is 2:1. State with reason which of the following transaction would

i. Increase or ii. decrease or iii. not change the ratio

1. Included in the trade payables was a bills payable of Rs.9,000 which was met on maturity.

2. Company issued 1,00,000 equity shares of Rs.10 each to the Vendors of machinery purchased.


What is meant by 'Liquidity of Business'?


 From the given information calculate the Stock turnover ratio. Sales Rs 2,00,000; G.P: 25% on cost; Stock at the beginning is 1/3 of the stock at the end which was 30% of sales. 


Current ratio of Adaar Ltd. is 2.5:1. Accountant wants to maintain it at 2:1. Following options are available.

  1. He can repay Bills Payable
  2. He can purchase goods on credit
  3. He can take short term loan

Which of the following is not included in cash and cash equivalents?


A decrease in Outstanding Expenses would result in:


A Company's Current Liabilities decreased from ₹ 12,00,000 to ₹ 9,00,000. What is the percentage of change in Current Liabilities?


Which one of-the following statement is incorrect?


______ is included in current assets while preparing balance sheet as per revised Schedule III but excluded from current assets while calculating Current Ratio.


A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50 000, having a Current Ratio of 2:1. What will be the company's revised Current Ratio after it collects ₹ 20,000 cash from its debtors of ₹ 25,000, the remaining debtors being bad?


State with reason whether Provision for Doubtful Debts is subtracted from Trade Receivables while computing Current Ratio.


Calculate Quick Ratio (up-to two decimal places) from the following information:

Particulars (₹)
Total Current Assets 90,000
Working Capital 60,000
Prepaid Expenses 30,000

What is the difference between Total Assets and Current Liabilities?


A company has a Quick Ratio of 1.8 : 1. Mention whether this ratio will improve/reduce/not change after it sells a machine worth ₹ 1,20,000 at a loss of ₹ 30,000.


A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50,000, having a current Ratio of 2 : 1. What will be its revised Current Ratio after it endorses a bills receivable of ₹ 40,000 to one of its creditors?


From the following particulars of NB Ltd., calculate its Cost of Revenue from Operations for the year 2023-24.

Particulars  
Current Assets ₹ 6,80,000
Current Liabilities ₹ 3,40,000
Quick Ratio 1.5 : 1
Inventory Turnover Ratio 4 times

Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×