Question

Plant and Machinery = 15000; Stock of Raw material = 15000; debtors = 18000;
Loose tools = 10000; Bills Receivable = 8000; Current Liability = 25000, Bank
Over draft 10000, with the available data, you are required to find Liquid Ratio
and indicate the correct answer from the following.
0
73.33%
0 25%
O
66.66%
O 20%​

Answer 1

god knows.

.................

Answer 2

Answer:

Calculate current ratio and liquid ratio from the following information:

Particulars Rs.

Current liabilities

Trade receivables

Cash in hand

Cash at Bank

Inventories

Advance Tax 50,000

30,000

10,000

10,000

20,000

10,000

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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.