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
Z Ltd. purchased furniture costing ₹ 2,20,000 from C.D Ltd. The payment was to be made by issue of 9% Preference Shares of ₹ 100 each ata premium of ₹ 10 per share. Pass necessary Journal entries in the books of Z Ltd.
Journalise the following:
Y Ltd. forfeited 400 shares of ₹ 100 each, issued at a premium of ₹ 5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share. The second and final call of ₹ 20 has not yet been called. Out of these, 100 shares were re-issued on fully paid-up for ₹ 110 per share.
Y Ltd. forfeited 400 shares of ₹ 100 each, issued at a premium of ₹ 5 per share (to be paid at the time of allotment) for non-payment of a first call of ₹ 20 per share. The second and final call of ₹ 20 has not yet been called. Out of these, 100 shares were re-issued on fully paid-up for ₹ 110 per share.
Following is the position of Current Assets and Current Liabilities of Z Ltd.
The Company incurred a loss of ₹ 30,000 during the year. Calculate Cash from operating activities.
The Company incurred a loss of ₹ 30,000 during the year. Calculate Cash from operating activities.
Can a company purchase its own debentures in the open market? Explain.
Following is the position of Current Assets and Current Liabilities of X Ltd.:
The company incurred a loss of ₹ 37,000 during the year. Calculate 'Cash from operating activities'.
The company incurred a loss of ₹ 37,000 during the year. Calculate 'Cash from operating activities'.
Total Debt ₹ 40,00,000; Share Capital ₹ 15,00,000; Reserve and Surplus ₹ 8,00,000; Current Liabilities ₹ 5,00,000; Working Capital ₹ 7,00,000. Calculate Total Assets to Debt Ratio.
From the following information, calculate Oprating Ratio:
|
Cost of Revenue
|
₹
|
|
From Operation (Cost of Goods Sold).
|
52,000
|
|
Operating Expenses.
|
18,000
|
| Revenue from Operation | |
| Gross Sales. | 88,000 |
| Sales Return. | 8,000 |
Mr. Arun Birla owns a business and gives the following figures for two successive years:
Mr. Arun Birla speaks very high of his Manager who has increased the profits from ₹ 15,000 to ₹ 24,000 and describes him very 'Efficient'. Do you agree with him? If not, why?
|
|
1st Year
|
2nd Year
|
|
|
₹
|
₹
|
|
Revenue from Operations
|
60,000
|
1,20,00
|
|
Gross Profit
|
15,000
|
24,000
|
Identify the major heads and sub-heads under which the following items will be shown in the Balance Sheet of a company as per Schedule III of Companies Act, 2013:
i. Patents
ii. Patents being developed by the Company
iii. Current Maturities of Long term Debts
iv. Computer and related equipment
v. Goods acquired for trading
vi. 10% Debentures
vii. Debentures with maturity period in current financial period.
i. Patents
ii. Patents being developed by the Company
iii. Current Maturities of Long term Debts
iv. Computer and related equipment
v. Goods acquired for trading
vi. 10% Debentures
vii. Debentures with maturity period in current financial period.
Credit Revenue from Operations ₹ 5,60,000; Trade Receivables Turnover Ratio 7 times; Closing Trade Receivables were three times than that in the beginning. Calculate Opening and Closing Trade Receivables.