ACCOUNTING RATIOS T.S.GREWAL CH-3 (CURRENT, LIQUID & DEBT EQUITY RATIO) QUE NO-34,35,36,37,38,39

ACCOUNTING RATIOS T.S.GREWAL CH-3 (CURRENT, LIQUID & DEBT EQUITY RATIO) QUE NO-34,35,36,37,38,39 Class 12 Accounts

. Total Assets 11,00,000; Fixed Assets 5,00,000; Capital Employed Long-term Investments. Calculate Current Ratio. 10,00,000. There were no

[Ans.: Current Ratio = 6: 1.]

[Hints: 1. Current Assets = Total Assets - Fixed Assets. 2. Current Liabilities = Total Assets - Capital Employed.]

35. Capital Employed 20,00,000; Fixed Assets Long-term Investments. Calculate Current Ratio. 14,00,000; Current Liabilities 2,00,000. There are no

[Ans.: Current Ratio = 4: 1.]

[Hint: Current Assets = Capital Employed + Current Liabilities - Fixed Assets.]

36. From the following calculate: (i) Current Ratio; and (ii) Quick Ratio:

₹

Total Debt

12,00,000

Total Assets

16,00,000

Property, Plant and Equipment

6,00,000

Non-current Investments

1,00,000

Long-term Loans and Advances

Prepaid Expenses

₹

Long-term Borrowings

Long-term Provisions

Inventories

1,90,000

10,000

[Ans.: Current Ratio = 2: 1; Quick Ratio =1.5: 1.]

Following is the Balance Sheet of Crescent Chemical Works Limited as at 31st March, 2023:

Particulars

I. EQUITY AND LIABILITIES

Note No.

1. Shareholders' Funds

(a) Share Capital

70,000

(b) Reserves and Surplus

35,000

2. Non-Current Liabilities

25,000

Long-term Borrowings

3. Current Liabilities

(a) Short-term Borrowings

3,000

(b) Trade Payables (Creditors)

13,000

(c) Short-term Provisions: Provision for Tax

4,000

Total

1,50,000

II. ASSETS

1. Non-Current Assets

(a) Property, Plant and Equipment and Intangible Assets: Property, Plant and Equipment

45,000

(b) Non-current Investments

5,000

50,000

2. Current Assets

(a) Inventories (Stock)

(b) Trade Receivables (Debtors)

(c) Cash and Cash Equivalents

Total

30,000

20,000

1,50,000

Compute Current Ratio and Liquid Ratio.

[Ans.: Current Ratio = 5: 1; Liquid Ratio = 2.5: 1.]

Debt to Equity Ratio

38. Total Assets 2,60,000; Total Debts 1,80,000; Current Liabilities 20,000. Calculate Debt to Equity Ratio.

[Hints: 1. Long-term Debts = Total Debts - Current Liabilities.

[Ans.: Debt to Equity Ratio = 2: 1.]

2. Shareholders' Funds = Total Assets - Total Debts.]

39. Calculate Debt to Equity Ratio: Equity Share Capital 5,00,000; General Reserve 90,000; Accumulated Profits 50,000; 10% Debentures 1,30,000; Current Liabilities 1,00,000.

[Ans.: Debt to Equity Ratio = 0.203: 1 (i.e., 1,30,000÷6,40,000).]

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