Question
From the following particulars compute the Current Ratio:
✓
Answer
Current Ratio $=\frac{\text{Current Assets}}{\text{Current Liabilities}}$
Current Assets = Inventory + Trade Receivables + Current Investments + Cash and Cash Equivalents.
= ₹ 70,000 + ₹ 90,000 + ₹ 35,000 + ₹ 5,000
= ₹ 2,00,000
Current Liabilities = Trade Payables + Short term Borrowings + Provision for Tax + Outstanding Expenses.
= ₹ 46,000 + ₹ 20,000 + ₹ 10,000 + ₹ 4,000
= ₹ 80,000
Current Ratio $=\frac{₹\ 2,00,000}{₹\ 80,000}=2.5:1$
Current Assets = Inventory + Trade Receivables + Current Investments + Cash and Cash Equivalents.
= ₹ 70,000 + ₹ 90,000 + ₹ 35,000 + ₹ 5,000
= ₹ 2,00,000
Current Liabilities = Trade Payables + Short term Borrowings + Provision for Tax + Outstanding Expenses.
= ₹ 46,000 + ₹ 20,000 + ₹ 10,000 + ₹ 4,000
= ₹ 80,000
Current Ratio $=\frac{₹\ 2,00,000}{₹\ 80,000}=2.5:1$
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
Cash Sales ₹ 2,20,000; Credit Sales ₹ 3,00,000; Sales Return ₹ 20,000; Gross Profit ₹ 1,00,000; Operating Expenses ₹ 25,000; Non-operating Incomes ₹ 30,000; Non-operating Expenses ₹ 5,000. Calculate Net Profit Ratio.
Current Assets of a company are ₹ 5,00,000. Its Current Ratio is 2.5 : 1 and Quick Ratio is 1 : 1. Calculate value of Current Liabilities, Liquid Assets and Inventory.
From the following, compute Current Ratio:
[Hint: Marketable securities means the Short-term Investment.]
|
|
₹
|
|
₹
|
|
Trade Receivables (Sundry Debtors).
|
1,80,000
|
Bills Payable.
|
20,000
|
|
Prepaid Expences.
|
40,000
|
Sundry Creditor.
|
1,00,000
|
|
Case and Case Equivalents.
|
50,000
|
Debentures.
|
4,00,000
|
|
Marketeble Securities.
|
50,000
|
Inventories.
|
80,000
|
|
Land and Building.
|
5,00,000
|
Expenses Payable.
|
80,000
|
From the following information, calculate Total Assets to Debt Ratio:
|
|
₹
|
|
Fixed Assets (Gross).
|
6,00,000
|
|
Non-current Investments.
|
10,000
|
|
Current Assets.
|
2,50,000
|
|
Long-term Borrowings.
|
3,00,000
|
| Accumulated Depreciation. | 1,00,000 |
| Long -term Loans and Advances. | 40,000 |
| Current Liabilities. | 2,00,000 |
| Long-term Provisions | 1,00,000 |
From the following information, calculate interest coverage ratio and give your comments also:
Compute Operating Ratio from the following Statement of Profit and Loss of X Ltd. for the year ended 31st March, 2018:
Following is the Balance Sheet of Title Machine Ltd. as on March 31, 2006.
Calculate Current Ratio and Liquid Ratio.
Calculate Current Ratio and Liquid Ratio.
Calculate Inventory Turnover Ratio from the following information:
Opening Inventory is ₹ 50,000; Purchases ₹ 3,90,000; Revenue from Operations, i.e., Net Sales ₹ 6,00,000; Gross Profit Ratio 30%.
Opening Inventory is ₹ 50,000; Purchases ₹ 3,90,000; Revenue from Operations, i.e., Net Sales ₹ 6,00,000; Gross Profit Ratio 30%.
X Ltd forfeited 1,000 Equity shares of ₹ 10 each issued at a premium of ₹ 3 per share for the non-payment of final call of ₹ 6 (including premium) per share. The forfeited shares were re-issued as fully paid up for ₹ 7 per share.
Pass necessary journal entries in the books of the company.
Pass necessary journal entries in the books of the company.
A company purchased assets of the value of ₹ 1,90,000 from another company and agreed to make the payment of purchase consideration by issuing 2,000, 10% debentures of ₹ 100 each at a discount of 5%. Record necessary journal entries.