(i) Calculate Current Ratio from the following:- Stock RS 300000, Debtors Rs 50000, Cash Bal Rs 250000, Creditors Rs 150000, Bank loan RS 50000.
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Class 12
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>>Calculate current ratio and quick ratio
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Calculate current ratio and quick ratio from the following information.
Stock Rs.1,00,000
Debtors Rs. 80,000
Bills receivables Rs. 20,000
Advance Tax Rs. 8,000
Cash Rs. 60,000
Creditors Rs.1,20,000
Bills payable Rs. 80,000
Bank overdraft Rs. 8,000
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Solution
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Current assets = Stock + Debtors +BR + Advance tax + Cash
= 100000 + 80000 + 20000 + 8000 + 60000
= 268000
Current Liabilities = Creditors + BP + Bank OD
= 120000 + 80000 + 8000
= 208000
Quick assets = Current assets - stock
= 268000 - 100000
= 168000
Current ratio = Current Assets / Current Liabilities
= 268000/208000
= 1.28
Quick ratio = Quick assets / Current Liabilities
= 168000/200000
= 0.84