DK Goel Solutions CHAPTER-5 - Accounting Ratios Question 1 Current Ratio = Current Assets : Current Liabilities Current Assets = Current Investments +
Accounting Ratios Solution Liquidity Ratio = Liquid Assets Current Liabilities Liquidity Assets = Current assets –(Inventories + Prepaid expenses +
Accountancy for Class – XI By: D K Goel, Rajesh Goel and Shelly Goel Gaining Ratio, Accounting for Revaluation of Assets and Liabilities, Distribution
![[PDF] CHAPTER-5 - Accounting Ratios - AWS](https://pdfprof.com/EN_PDFV2/Docs/PDF_6/2161_6dk_goel_solutions_class_12_accountancy_volume_2_chapter_5.pdf.jpg "[PDF] CHAPTER-5 - Accounting Ratios - AWS")
2161_6dk_goel_solutions_class_12_accountancy_volume_2_chapter_5.pdf Class XII (Vol 2) www.vedantu.com DK Goel Solutions
CHAPTER-5 - Accounting Ratios
Question 1
Current Ratio = Current Assets : Current Liabilities Current Assets = Current Investments + Inventories (Less: Loose Tools) + Trade Receivables (Sundry Debtors + Bills Receivables) +
Cash and Bank Balance
= 40,000 + 2,30,000 + 1,60,000 + 20,000 + 30,000 ൟ4,80,000/- Current Liabilities = Trade Payables (Sundry Creditors + Bills Payables) + Short term Borrowings + Short term Provision (Provision for Tax) = 1,20,000 + 10,000 + 50,000 + 20,000 ൟ 2,00,000/-
Current Ratio= 4,80,000 : 2,00,000
=12 : 5
Question 2
The following ratios are included in Liquidity Ratios- Current ratio => Current Asset : Current Liabilities Quick ratio => Quick Assets : Current Liabilities Current Assets = Marketable Securities + Trade Receivables + Cash and Bank Balance + Inventories + Income Tax paid in advance Class XII (Vol 2) www.vedantu.com DK Goel Solutions = 40,000 + 1,80,000 + 80,000 + 3,90,000 + 30,000 ൟ 7,20,000/- Current Liabilities = Trade Payables + Rent Payable + Dividend
Payable + Bank Overdraft + Provisions for Tax
= 1,20,000 + 10,000 + 30,000 + 25,000 + 55,000 ൟ 2,40,000/- Quick Assets = Current Assets Inventories Income Tax Paid in
Advance
= 7,20,000 3,90,000 30,000 = 3,00,000
Therefore,
Current Ratio = 7,20,000 : 2,40,000
= 3: 1
Quick Ratio = 3,00,000 : 2,40,000
= 5 : 4