Question
From the following compute Current Ratio:
✓
Answer
Current Ratio $=\frac{\text{Current Assets}}{\text{Current Liabilities}}$
Current Assets = Total Assets - Non Current Assets.
= ₹ 40,00,000 - ₹ 22,00,000 - ₹ 18,00,000
Current Liabilities = Total Assets - Share Capital - Reserve & Surplus - Non Current Liabilities.
= ₹ 40,00,000 - ₹ 24,00,000 - ₹ 3,00,000 - ₹ 8,00,000
= ₹ 5,00,000
Current Ratio $=\frac{₹\ 18,00,000}{₹\ 5,00,000}=3.6:1$
Current Assets = Total Assets - Non Current Assets.
= ₹ 40,00,000 - ₹ 22,00,000 - ₹ 18,00,000
Current Liabilities = Total Assets - Share Capital - Reserve & Surplus - Non Current Liabilities.
= ₹ 40,00,000 - ₹ 24,00,000 - ₹ 3,00,000 - ₹ 8,00,000
= ₹ 5,00,000
Current Ratio $=\frac{₹\ 18,00,000}{₹\ 5,00,000}=3.6:1$
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
Total Assets ₹ 2,60,000; Total Debts ₹ 1,80,000; Current Liabilities ₹ 20,000. Calculate Debt to Equity Ratio.
List any five items that are shown under Reserves and Surplus.
Pass necessary journal entries in the following cases:
- Z Ltd redeemed 1500, 12% debentures of ₹ 100 each issued at a discount of 6% by converting them into equity shares of ₹ 100 each issued at a premium of ₹ 25 per share.
- X Ltd. converted 1,000, 12% debentures of ₹ 100 each issued at a discount of ₹ 10 per debenture into equity shares of ₹ 100 each, ₹ 90 paid up.
Calculate Total Assets to Debt Ratio from the following information:
|
Particulars
|
₹
|
Particulars
|
₹
|
|
Total Assets.
|
15,00,000
|
Bills Payable.
|
60,000
|
|
Total Debts.
|
12,00,000
|
Bank Overdraft.
|
50,000
|
|
Creditors.
|
90,000
|
Outstanding Expenses.
|
20,000
|
‘B’ Ltd. took over the assets of ₹ 14,00,000 and liabilities of ₹ 4,00,000 of C Ltd. for a purchase consideration of ₹ 9,19,000. ₹ 17,000 were paid by a bank draft in favour of C Ltd. and the balance was paid by issue of equity shares of ₹ 10 each at a premium of 10% in favour of C Ltd. Pass necessary journal entries for the above transactions in the books of B Ltd.Pass necessary journal entries for the above transactions in the books of B Ltd.
R.Ltd. offered 20,00,000, 10% Debenture of ₹ 200 each at a discount of 7% redeemable at premium of 8% after 9 years. Record necessary entries in the books of R. Ltd.
Current Ratio 2.5 : 1, Quick Ratio 0.95 : 1, Current Assets ₹ 17,00,000. Calculate Current Liabilities, Quick Assets and Inventory.
150 shares of ₹ 10 each issued at a premium of ₹ 4 per share payable with allotment were forfeited for non-payment of allotment money of ₹ 8 per share including premium. The first and final call of ₹ 4 per Pass Journal entries in the books of X Ltd. for the above.
From the following particulars determine the Opening Trade Receivables:
Journalise the following:
A debenture issued at ₹ 95, repayable at ₹ 100.
A debenture issued at ₹ 95, repayable at ₹ 105; and
A debenture issued at ₹ 100, repayable at ₹ 105;
The face value of debenture in each of the above cases is ₹ 100.
A debenture issued at ₹ 95, repayable at ₹ 100.
A debenture issued at ₹ 95, repayable at ₹ 105; and
A debenture issued at ₹ 100, repayable at ₹ 105;
The face value of debenture in each of the above cases is ₹ 100.