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Calculate Current Ratio If: Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1. - Accountancy

Numerical

Calculate Current Ratio if:

Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1.

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Solution

`"Quick Ratio" = "Liquid Assets"/"Current Liablities"`

or, `2 = "24,00,000"/"Current Liablities"`

`"Current Liablities" = "24,00,000"/2`

                                = `12,00,000`

Current Assets = Liquid Assets + Inventory

                        = `24,00,000 = 6,00,000`

                        = `30,00,000`

`"Current Ratio" = "Current Assets"/"Current Liablities"`

`= "30,00,000"/"12,00,000" = 2.5/1 = 2.5:1`

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APPEARS IN

NCERT Class 12 Accountancy - Company Accounts and Analysis of Financial Statements
Chapter 5 Accounting Ratios
Numerical Questions | Q 8 | Page 230
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