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12th | Accounting Ratios | Question No. 16 To 20 | Ts Grewal Solution 2022-2023

Question 16:


From the following information, calculate Liquid Ratio:      

Particulars

 `

Particulars

 `

Current Assets

2,00,000

Trade Receivables

1,10,000

Inventories

50,000

Current Liabilities

70,000

Prepaid Expenses 

10,000

 

 

 

 

 

 

 

 

 

 

Answer:


Quick Assets or Liquid Assets = Currents Assets – Inventories – Pre-paid Expenses
=
 ` 2,00,000 –  ` 50,000 –  ` 10,000 =  ` 1,40,000
Current Liabilities =
 ` 70,000

Current ratio= liquid assets or quick assets/Current liabilities=1,40,000/70,000=2:1

 

Question 17:


Quick Assets `3,00,000; Inventory (Stock) `80,000; Prepaid Expenses `20,000; Working Capital `2,40,000. Calculate Current Ratio.

Answer:


Current Assets= Quick Assets +Inventory (Stock) +Prepaid Expenses

Current Assets= 3,00,000+ 80,000+20,000

Current Assets= 4,00,000

Current Liabilities = Current Assets- Working Capital

Current Liabilities = 4,00,000 - 2,40,000

Current Liabilities = 1,60,000

Current Ratio

=

Current Assets/ Current Liabilities

Current Ratio

=

4,00,000/1,60,000

Current Ratio

=

2.5 :1

 

 

Question 18:


Current Assets `6,00,000; Inventories `1,20,000; Working Capital `5,04,000. Calculate Quick Ratio.

 Answer:


Quick Assets

=

Current Assets + Inventories

 

=

6,00,000 - 1,20,000

Quick Assets

=

4,80,000

Current Liabilities

=

Current Assets- Working Capital

 

=

6,00,000-5,04,000

Current Liabilities

=

96,000

Quick Ratio

=

Quick Assets/ Current Liabilities

 

=

4,80,000/96,000

 

=

5/1 = 5:1

 

Question 19:


Current Liabilities of a company are   ` 6,00,000. Its Current Ratio is 3 : 1 and Liquid Ratio is 1 : 1. Calculate value of Inventory

Answer:


Current ratio= Quick assets/Current liabilities=3/1

Acid test ratio= Liquied assets/Current liabilities=1/1

Current Liabilities = 6,00,000

Current Assets = 3 × Current Liabilities

= 3 × 6,00,000 = 18,00,000

Liquid Assets = 1 × 6,00,000 = 6,00,000

Inventory = Current Assets − Liquid Assets

= 18,00,000 − 6,00,000 = 12,00,000

 

Question 20:


Moon Ltd. has a Current Ratio of 3.5 : 1 and Quick Ratio of 2 : 1. If the Inventories is   `  24,000; calculate total Current Liabilities and Current Assets.

Answer:


Current ratio= Current assets/Current liabilities=3.5/1

 

Quick ratio= Quick assets/Current liabilities=2/1

Let Current Liabilities be = x

Current Assets = 3.5 x

Quick Assets = 2 x

Stock = Current Assets − Quick Assets

24,000 = 3.5 x − 2 x

or, 24,000 = 1.5 x

x = 16,000

Current Liabilities = x =  ` 16,000

Current Assets = 3.5 x = 3.5 × 16,000 =  ` 56,000

 

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Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

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