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प्रश्न
State giving reason, whether the Current Ratio will improve or decline or will have no effect in each of the following transactions if Current Ratio is 2:1:
(a) Cash paid to Trade Payables.
(b) Bills Payable discharged.
(c) Bills Receivable endorsed to a creditor.
(d) Payment of final Dividend already declared.
(e) Purchase of Stock-in-Trade on credit.
(f) Bills Receivable endorsed to a Creditor dishonoured.
(g) Purchases of Stock-in-Trade for cash.
(h) Sale of Fixed Assets (Book Value of ₹50,000) for ₹45,000.
(i) Sale of FIxed Assets (Book Value of ₹50,000) for ₹60,000.
उत्तर
Let’s assume Current Assets as Rs 2,00,000 and Current Liabilities as Rs 1,00,000
`"Current Ratio" = "Current Assets"/ "Current liability" = 200000/100000 = 2 : 1`
(a) Cash paid to Trade Payables (say Rs 50,000)
`"Current Ratio" = (200000 - 50000)/(100000 - 50000) = 3 : 1` (Improve)
(b) Bills Payable discharged (say Rs 50,000)
`"Current Ratio" = (200000 - 50000)/(100000 - 50000) = 3 : 1` (Improve)
(c) Bills Receivable endorsed to a creditor (say Rs 50,000)
`"Current Ratio" = (200000 - 50000)/(100000 - 50000) = 3 : 1` (Improve)
(d) Payment of final Dividend already declared (say Rs 50,000)
`"Current Ratio" = (200000 - 50000)/(100000 - 50000) = 3 : 1` (Improve)
(e) Purchase of Stock-in-Trade on credit (say Rs 50,000)
`"Current Ratio" = (200000 + 50000)/(100000 + 50000) = 1.67 : 1`(Decline)
(f) Bills Receivable endorsed to a Creditor dishonoured (say Rs 50,000)
`"Current Ratio" = (200000 + 50000)/(100000 + 50000) = 1.67 : 1`(Decline)
(g) Purchase of Stock-in-Trade for cash (say Rs 50,000)
Current Ratio = `(200000 + 50000 - 50000)/100000` = 2:1 (No effect)
(h) Sale of Fixed Assets (Book value of Rs 50,000) for Rs 45,000
Current Ratio = `(200000 + 45000)/100000 = 2.45 : 1` (Improve)
(i) Sale of Fixed Assets (Book value of Rs 50,000) for Rs 60,000
Current Ratio = `(200000 + 60000)/100000 = 2.6:1` (Improve)
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संबंधित प्रश्न
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| Inventory at the end of the year | Rs 10000 |
| Purchases | Rs 50,000 |
| Carriage Inwards | Rs 5000 |
| Revenue from Operations, i.e., Sales | Rs 100000 |
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Case 3: Cost of Revenue from Operations or Cost of Goods Sold ₹3,00,000; Gross Profit on Cost 25%; Cash Sales 20% of Total Sales; Opening Trade Receivables ₹50,000; Closing Trade Receivables ₹1,00,000.
Case 4: Cost of Revenue from Operations or Cost of Goods Sold ₹4,50,000; Gross Profit on Sales 20%; Cash Sales 25% of Net Credit Sales, Opening Trade Receivables ₹90,000; Closing Trade Receivables ₹60,000.
Calculate Trade payables Turnover Ratio from the following information:
Opening Creditors ₹ 1,25,000; Opening Bills Payable ₹ 10,000; Closing Creditors ₹ 90,000; Closing bills Payable ₹ 5,000; Purchases ₹ 9,50,000; Cash Purchases ₹ 1,00,000; Purchases Return ₹ 45,000.
From the following information, calculate Working Capital Turnover Ratio:
| ₹ | |
| Cost of Revenue from Operations (Cost of Goods Sold) | 10,00,000 |
| Current Assets | 5,00,000 |
| Current Liabilities | 3,00,000 |
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