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प्रश्न
State giving reasons, which of the following transactions would improve, reduce or not change the Current Ratio, if Current Ratio of a company is (i) 1:1; or (ii) 0.8:1:
(a) Cash paid to Trade Payables.
(b) Purchase of Stock-in-Trade on credit.
(c) Purchase of Stock-in-Trade for cash.
(d) Payment of Dividend payable.
(e) Bills Payable discharged.
(f) Bills Receivable endorsed to a Creditor.
(g) Bills Receivable endorsed to a Creditor dishonoured.
उत्तर
(i) Let’s assume Current Assets as Rs 1,00,000 and Current Liabilities as Rs 1,00,000
`"Current Ratio" = "Current Assets"/ "Current liability"`
Current Ratio = `100000/100000 = 1: 1`
(a) Cash paid to Trade Payables (say Rs 50,000)
Current Ratio = `(100000 - 50000)/(100000 - 50000) = 1 : 1` (No change)
(b) Purchase of Stock-in-Trade on credit (say Rs 50,000)
Current Ratio = `(100000 + 50000)/(100000 + 50000) = 1 : 1` (No change)
(c) Purchase of Stock-in-Trade for cash (say Rs 50,000)
Current Ratio = `(100000 + 50000 - 50000)/100000 = 1 : 1` (No change)
(d) Payment of Dividend (say Rs 50,000)
Current Ratio = `(100000 - 50000)/(100000 - 50000) = 1 : 1` (No change)
(e) Bills Payable discharged (say Rs 50,000)
Current Ratio = `(100000 - 50000)/(100000 - 50000) = 1:1` (No change)
(f) Bills Receivable endorsed to a Creditor (say Rs 50,000)
Current Ratio = `(100000 - 50000)/(100000 - 50000) = 1:1` (No change)
(g) Bills Receivable endorsed to a Creditor dishonoured (say Rs 50,000)
Current Ratio = `(100000 + 50000)/(100000 + 50000) = 1:1` (No change)
(ii) Let’s assume Current Assets as Rs 80,000 and Current Liabilities as Rs 1,00,000
`"Current Ratio" = "Current Assets"/ "Current liability"`
Current Ratio =`80000/100000 = 0.8 : 1`
(a) Cash paid to Trade Payables (say Rs 50,000)
Current Ratio = `(80000 - 50000)/(100000 - 50000) = 0.6 : 1 ` (Reduce)
(b) Purchase of Stock-in-Trade on credit (say Rs 50,000)
Current Ratio = `(80000 + 50000)/(100000 + 50000) = 0.87 : 1 ` (Improve)
(c) Purchase of Stock-in-Trade for cash (say Rs 50,000)
Current Ratio = (80000 + 50000 - 50000)/100000 = 0.8 : 1 (No change)
(d) Payment of Dividend (say Rs 50,000)
Current Ratio = `(80000 - 50000)/(100000 - 50000) = 0.6 : 1 ` (Reduce)
(e) Bills Payable discharged (say Rs 50,000)
Current Ratio = `(80000 - 50000)/(100000 - 50000) = 0.6 : 1 ` (Reduce)
(f) Bills Receivable endorsed to a Creditor (say Rs 50,000)
Current Ratio = `(80000 - 50000)/(100000 - 50000) = 0.6 : 1 ` (Reduce)
(g) Bills Receivable endorsed to a Creditor dishonoured (say Rs 50,000)
Current Ratio = `(80000 + 50000)/(100000 + 50000) = 0.87 : 1 ` (Improve)
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| 31st March,2018 (₹) | 31st March,2019 (₹) | |
| Sundry Debtors | 28,000 | 25,000 |
| Bills Receivable | 7,000 | 15,000 |
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| Cost of Revenue | Revenue from Operation: | |||
| from Operations (Cost of Goods Sold) | ₹52,000 | Gross Sales | ₹ 88,000 | |
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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 |
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|
Particulars |
₹ |
||
|
Share Capital |
5,00,000 |
||
| Reserves and Surplus | 2,50,000 | ||
| Net Fixed Assets | 22,50,000 | ||
| Non-current Trade Investments | 2,50,000 | ||
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| 10% Long-term Borrowings | 20,00,000 | ||
| Current Liabilities | 8,50,000 | ||
|
Long-term Provision |
NIL |
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