Accountancy, asked by rvshrm130786, 6 months ago

3. (Current Ratio) Find out Current ratio.
Trade Receivable 33,000 ; Provision for Bad Debts * 3,000 ; Stock twice of net Debtors ;
Cash in hand 16,000 ; Advance to suppliers 15,000 ; Trade Payable 35,000 ;
Outstanding expenses ? 15,000 ; Prepaid expenses 35,000 Investment (Long term) * 12,000 ;
Ane Cumont notin ?. 11​

Answers

Answered by umaisaimtiyaz9120
0

Explanation:

Current Assets=(Trade Receivable - provision for bad debts) + Stock(2 of net debtor) + Cash in hand + Advance to suppliers + Prepaid expenses

(33,000 -3000)+ (2× 30,000) + 16,000 + 15,000 + 5,000

Current Assets= 1,26,000

 

Current Liabilities=Trade Payable + Outstanding expenses = 35,000 +  15,000

Current Liabilities= 50,000

 

Current Ratio=Current Assets/Current Liabilities

 

Current Ratio=1,26,000/50,000

=2.52:1

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