Question

CA
04. From the following particulars, Calculate current ratio and quick ratio:
Particulars
₹
Inventories (stock)
1,20,000
Trade Receivables
90,000
Cash in hand
22,800
Current Investment
7,200
Trade Payables
2,34,000
Proposed dividend.CL
6,000
Bank overdraft
60,000​

Answer 1

Answer:Current ratio = Current asset / Current liabilities

                     = 80000/50000 = 1.6

Quick ratio = Quick assets / Current liabilities

                   = 60000/ 50000 = 1.2

Current Assets = Trade receivables + Cash in hand + Cash at Bank + Inventories + Advance Tax  

= 30000 + 10000 + 10000 + 20000 + 1000 = 80000

Quick Assets = Current Assets - Inventories = 80000-20000 = 60000

Current Liabilities = 50000.

Explanation:

Answer 2

Answer:

current ratio 0.8:1. quick ratio 0.4:1