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Question
From the following information, calculate Liquid Ratio:
|
Particulars |
₹ | Particulars |
₹ |
|||
|
Current Assets |
2,00,000 | Trade Receivables |
1,10,000 |
|||
|
Inventories |
50,000 | Current Liabilities |
70,000 |
|||
|
Prepaid Expenses |
10,000 |
|
||||
Solution
Quick Assets or Liquid Assets = Currents Assets – Inventories – Pre-paid Expenses
= Rs 2,00,000 – Rs 50,000 – Rs 10,000 = Rs 1,40,000
Current Liabilities = Rs 70,000
`"Liquid Ratio" = "Liquid Assets or Quick Assets"/"Current Liabilities" = 140000/70000 = 2:1`
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Quick Ratio of a company is 2:1. State giving reasons, which of the following transactions would
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| Particulars | ₹ |
Particulars |
₹
|
||
| Total Assets | 15,00,000 | Bills Payable | 60,000 | ||
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||
From the following information, calculate Proprietary Ratio:
|
Particulars |
Note No. |
Amount |
|
I. EQUITY AND LIABILITIES 1. Shareholders' Funds |
|
|
|
(a) Share Capital |
|
6,00,000 |
|
(b) Reserves and Surplus |
|
1,50,000 |
|
2. Current Liabilities |
|
|
|
(a) Trade Payables |
|
1,00,000 |
|
(b) Other Current Liabilities |
|
50,000 |
|
(c) Short-term Provisions (Provision for Tax) |
|
1,00,000 |
|
Total |
|
10,00,000 |
|
II. ASSETS |
|
|
|
1. Non-Current Assets |
|
|
|
Fixed Assets (Tangible Assets) |
|
5,00,000 |
|
2. Current Assets |
|
|
|
(a) Current Investments |
|
1,50,000 |
|
(b) Inventories |
|
1,00,000 |
|
(c) Trade Receivables |
|
1,50,000 |
|
(d) Cash and Cash Equivalents |
|
1,00,000 |
|
Total |
|
10,00,000 |
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| ₹ | ||
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| (ii) | Depreciation on Fixed Tangible Assets | 50,000 |
| (iii) | Loss on Sale of Fixed Tangible Assets (Machinery) |
20,000 |
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31.3.2018 (₹) |
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