Question
Do we consider current investment for current ratio ?

Answer

Yes, we have to consider current investment for current ratio. Because in calculation of current ratio we consider current assets and current investments are included in current assets.

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Similar questions

Sachin Marble Limited issued $12,000$ debentures of $Rs.100$ each for public subscription Interest $18$ to be paid at the rate of $10\%$ p.a. The amount were called up per debenture as under:
With application $Rs.30,$
On allotment $Rs.45,$
On call $Rs.25$ Application were received by company of $15,000$ debentures.
After allotment of $12,000$ debentures, rejected excess application of debentures and refunded the money to applicants.
All the amounts due on allotment and call were duly received. Write journal entries in the books of the company.
How would you deal with the following balances disclosed in the balance sheet at the time of the dissolution of a partnership firm? Explain.
$(i)$ General Reserve $(ii)$ Investment Fluctuation Fund
$(iii)$ Workmen Accident Compensation Fund $(iv)$ Providend Fund
$(v)$ Debit Balance of Profit and Loss A/c $(vi)$ Depreciation Fund
Distinguish between shares and debentures.
Write short note: Realisation account.
Which accounts are prepared to close the books at the time of dissolution of a partnership firm? Describe it.
From the following information calculate cash flow from financing activities:
Particulars $31-3-2017(Rs.)$ $31-3-2016(Rs.)$
$10\%$ Debentures $2,45,000$ $1,95,000$
Equity share capital $3,45,000$ $2,50,000$
$12\%$ Debentures $1,00,000$ $1,50,000$
Preference share capital $80,000$ $1,00,000$
Bank overdraft $45,000$ $68,000$
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Pass journal entries for the following of firm in the case of firm's dissolution: The profit-loss sharing ratio between partners $R, B$ and I is $3:2:1.$ Undertake the disposal of the following balances: $(i)$ General reserve $Rs. 18,000\ (ii)$ Debit balance of profit and loss A/c $Rs. 12,000\ (iii)$ Workmen accident compensation fund $Rs. 18,000.$
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$(i)\ M$ retires
$(ii)\ N$ retires
$(iii)\ O$ retires
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Where will you disclose the effects of the following adjustments during the preparation of final accounts of a partnership firm : Commission payable to partner on net profit.