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Question
Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments.
Calculate Current Ratio.
Solution
Current Assets = Total Assets − Fixed Assets
Fixed Assets = 10,00,000
Total Assets = 22,00,000
∴ Current Assets = 22,00,000 − 10,00,000 = 12,00,000
Current Liabilities = Total Assets − Capital Employed
= 22,00,000 − 20,00,000 = 2,00,000
`"Current Ratio" = "Current Assets"/ "Current liability" = 1200000/200000 = 6 : 1`
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| Total Debt | 6,00,000 | Long-term Borrowings | 2,00,000 |
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Particulars |
Note No. |
Amount |
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I. EQUITY AND LIABILITIES 1. Shareholders' Funds |
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(a) Share Capital |
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6,00,000 |
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2. Current Liabilities |
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(a) Trade Payables |
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1,00,000 |
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(b) Other Current Liabilities |
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50,000 |
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(c) Short-term Provisions (Provision for Tax) |
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1,00,000 |
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Total |
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10,00,000 |
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II. ASSETS |
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|
|
1. Non-Current Assets |
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|
|
Fixed Assets (Tangible Assets) |
|
5,00,000 |
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2. Current Assets |
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|
|
(a) Current Investments |
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1,50,000 |
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(b) Inventories |
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1,00,000 |
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(c) Trade Receivables |
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1,50,000 |
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(d) Cash and Cash Equivalents |
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1,00,000 |
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Total |
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10,00,000 |
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Particulars |
Note No. |
Amount (₹) |
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| I. EQUITY AND LIABILITIES
1. Shareholder's Funds |
|||
|
(a) Share Capital |
7,50,000 |
||
|
(b) Reserves and Surplus: |
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20,88,000 |
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14,58,000 |
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2. Non-Current Liabilities |
|||
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15% Long-term Borrowings |
24,00,000 |
||
|
3. Current Liabilities |
12,00,000 |
||
|
Total |
64,38,000 |
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| II. ASSETS | |||
|
1. Non-Current Assets |
|||
|
(a) Fixed Assets |
27,00,000 |
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(b) Non-Current Investments: |
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(i) 10% Investments |
3,00,000 |
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(ii) 10% Non-trade Investments |
1,80,000 |
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32,58,000 |
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Total |
64,38,000 |
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| ₹ | ||
| (i) | Goodwill written off | 5,000 |
| (ii) | Depreciation on Fixed Tangible Assets | 50,000 |
| (iii) | Loss on Sale of Fixed Tangible Assets (Machinery) |
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