Advertisements
Advertisements
प्रश्न
Following particulars are given to you:
| Particulars | ₹ | |
| Goodwill | 1,00,000 | |
| Inventories | 2,50,000 | |
| Trade Receivables | 1,35,000 | |
| Less: Provision | 5,000 | 1,30,000 |
| Investments (Short term) | 30,000 | |
| Expenses paid in Advance | 20,000 | |
| Cash and Bank Balance | 40,000 | |
| Accrued Income | 10,000 | |
| Short-term Provision | 20,000 | |
| Short-term Borrowings (Bank Overdraft) | 30,000 | |
| Trade Payables | 95,000 | |
| Expenses Payable | 5,000 |
Calculate the Current Ratio and Quick Ratio. What Conclusions do you draw from these ratios?
Advertisements
उत्तर
Current Assets = Inventories + Trade Receivables + Investments (Short-term) + Expenses paid in Advance + Cash and Cash Equivalents + Accrued Income
= ₹ 2,50,000 + ₹ 1,30,000 + ₹ 30,000 + ₹ 20,000 + ₹ 40,000 + ₹ 10,000
= ₹ 4,80,000
Current Liabilities = Short-term Provision + Short-term Borrowings (bank overdraft) + Trade Payables + Expenses Payable
= ₹ 20,000 + ₹ 30,000 + ₹ 95,000 + ₹ 5,000
= ₹ 1,50,000
Current Ratio = `"Current Assets"/"Current Liabilities"`
= `(₹ 4,80,000)/(₹ 1,50,000)`
= 3.2 : 1
Quick Assets = Current Assets − Inventories − Prepaid Expenses
= ₹ 4,80,000 − ₹ 2,50,000 − ₹ 20,000
= ₹ 2,10,000
Current Liabilities = ₹ 1,50,000
Quick Ratio = `"Quick Assets"/"Current Liabilities"`
= `(₹ 2,10,000)/(₹ 1,50,000)`
= 1.4 : 1
Note: Accrued Income is included in current assets as well as in quick assets.
