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Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the Amount of Current Assets and Current Liabilities. - Accountancy

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प्रश्न

Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

योग

उत्तर

`"Current Ratio" = "Current Assets"/ "Current liability"`

2.5 =`"Current Assets"/ "Current liability"`

Current Assets = 2.5 Current Liabilities

Working Capital = Current Assets - Current Liabilities

1,50,000 = 2.5  Current Liabilities - Current Liabilities

Current Liabilities = `150000/1.5`

Current Liabilities = Rs 100000

Current Assets = 2.5 Current Liabilities

Current Assets = 2.5 × 100000 = Rs 250000

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अध्याय 3: Accounting Ratios - Exercises [पृष्ठ ९१]

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टीएस ग्रेवाल Accountancy - Analysis of Financial Statements [English] Class 12
अध्याय 3 Accounting Ratios
Exercises | Q 3 | पृष्ठ ९१

संबंधित प्रश्न

Current Assets ₹ 3,00,000; Inventories ₹ 60,000; Working Capital ₹ 2,52,000.
Calculate Quick Ratio.


Quick Ratio of a company is 2:1. State giving reasons, which of the following transactions would
(i) improve, (ii) reduce, (iii) Not change the Quick Ratio: 
(a) Purchase of goods for cash;

(b) Purchase of goods on credit;

(c) Sale of goods (costing ₹10,000) for ₹10,000;

(d) Sale of goods (costing ₹10,000) for ₹11,000;

(e) Cash received from Trade Receivables.


Calculate Debt to Equity Ratio from the following information:

     
Fixed Assets (Gross) 8,40,000   Current Assets 3,50,000
Accumulated Depreciation 1,40,000   Current Liabilities 2,80,000
Non-current Investments 14,000   10% Long-term Borrowings 4,20,000
Long-term Loans and Advances 56,000   Long-term Provisions 1,40,000

Assuming That the Debt to Equity Ratio is 2 : 1, state giving reasons, which of the following transactions would  (i) increase; (ii) Decrease; (iii) Not alter Debt to Equity Ratio:


Total Debt ₹15,00,000; Current Liablities ₹5,00,000; Capital Employed ₹15,00,000. Calculate Total Assets to Debt Ratio. 


Calculate Total Assets to Debt Ratio from the following information:    

Particulars 

Particulars 

 

Total Assets 15,00,000 Bills Payable 60,000
Total Debts 12,00,000 Bank Overdraft 50,000
Creditors 90,000

Outstanding Expenses

20,000


₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories


Revenue from Operations: Cash Sales ₹ 5,00,000; Credit Sales ₹ 6,00,000; Sales Return ₹ 1,00,000. Current Assets ₹ 3,00,000; Current Liabilities ₹ 1,00,000. Calculate Working Capital Turnover Ratio.


Gross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio.
(i) Purchases of Stock-in-Trade ₹50,000.
(ii) Purchases Return ₹15,000.
(iii) Cash Sale of Stock-in-Trade ₹40,000.
(iv) Stock-in-Trade costing ₹20,000 withdrawn for personal use.
(v) Stock-in-Trade costing ₹15,000 distributed as free sample.


Operating Ratio 92%; Operating Expenses ₹94,000; Revenue from Operations ₹6,00,000; Sales Return ₹40,000. Calculate Cost of Revenue from Operations (Cost of Goods Sold).


What will be the Operating Profit Ratio, if Operating Ratio is 82.59%?


Net Profit before Interest and Tax ₹6,00,000; Net Fixed Assets ₹20,00,000; Net Working Capital ₹10,00,000; Current Assets ₹11,00,000. Calculate Return on Investment.


From the following Balance Sheet of Global Ltd., you are required to calculate Return on Investment for the year 2018-19:

BALANCE SHEET OF GLOBAL LTD.
as at 31st March, 2019 

Particulars 

Note No.

Amount

I. EQUITY AND LIABILITIES

1. Shareholder's Funds

   

(a) Share Capital–Equity Shares of ₹ 10 each Fully paid

 

5,00,000

(b) Reserves and Surplus

 

4,20,000

2. Non-Current Liabilities

   

15% Long-term Borrowings

 

16,00,000

3. Current Liabilities

 

8,00,000

Total

 

33,20,000

II. ASSETS    

1. Non-Current Assets

   

(a) Fixed Assets

 

16,00,000

(b) Non-Current Investments:

 

 

(i) 10% Investments

 

2,00,000

(ii) 10% Non-trade Investments

 

1,20,000

2. Current Assets

  14,00,000

Total

 

33,20,000

Additional Information: Net Profit before Tax for the year 2018-19 is rs 9,72,000. 


From the following information, calculate any two of the following ratios:

(i) Current Ratio; 
(ii) Debt to Equity Ratio; and
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"Repayment of current liability"


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Revenue from the sale of goods manufactured is shown in the Statement of Profit and Loss as ______


What relationship will be established to study:

Inventory Turnover


What relationship will be established to study:

Trade Receivables Turnover


Debt to Capital Employed ratio is 0.3:1. State whether the following transaction, will improve, decline or will have no change on the Debt to Capital Employed Ratio. Also give a reason for the same.

Conversion of Debentures into Equity Shares of ₹ 2,00,000.


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