Question

17. From the following information, calculate Liquid Ratio:
Particulars
Particulars
Current Assets
Inventories
Prepaid Expenses
2,00,000
50,000
10,000
Trade Receivables
Current Liabilities
1,10,000
70,000​

Answer 1

Answer:

Explanation:

Dr.

Particulars amount

Current assets 200000

Inventories 50000

Prepaid expenses 10000

Cr.

Particulars amount

Trade receivables 110000

Current liabilities 70000

Answer 2

$\sf\red{Liquid \: assets + Current \: assets - Inventories - prepaid \: expenses }$

$\implies$$\sf{2,00,000-50,000-10,000}$

$\implies$$\sf{1,40,000}$

$\sf\red{Liquid \: ratio = \frac{Liquid \: ratio}{Current \: liabilities} }$

$\implies$$\sf{\frac{1,40,000}{70,000} }$

$\implies$$\sf{2:1}$