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From the Following Information, Calculate Liquid Ratio: - Accountancy

Sum

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  

 

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Solution

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

`"Liquid Ratio" = "Liquid Assets or Quick Assets"/"Current Liabilities" = 140000/70000 = 2:1`

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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 15 | Page 93
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