Accountancy

A company had Current Assets of Rs. 4,50,000 and Current Liabilities of Rs. 2,00,000. Afterwards it purchased goods for Rs. 30,000 on credit. Calculate Current Ratio after the purchase

SOLUTION Current Assets = Rs. 4,50,000Current Liabilities = Rs. 2,00,000Purchase of Goods on Credit for Rs. 30,000 will have two effects: Increase Stock by Rs. 30,000, Current Assets will thereby increase to Rs. 4,80,000 (Rs. 4,50,000+ Rs. 30,000)Increase Creditors by Rs. 30,000 and therefore Current Liabilities will now be Rs. 2,30,000 (Rs. 2,00,000+ Rs. 30,000)…

Continue ReadingA company had Current Assets of Rs. 4,50,000 and Current Liabilities of Rs. 2,00,000. Afterwards it purchased goods for Rs. 30,000 on credit. Calculate Current Ratio after the purchase

Trade Payables Rs. 50,000, Working Capital Rs. 9,00,000, Current Liabilities Rs. 3,00,000. Calculate Current Ratio.

SOLUTION Working Capital = Current Assets - Current Liabilities9,00,000 = Current Assets − 3,00,000Current Assets = 9,00,000 + 3,00,000= Rs. 12,00,000Current Ratio = Current Assets / Current Liabilities= 12,00,000 / 3,00,000= 4: 1

Continue ReadingTrade Payables Rs. 50,000, Working Capital Rs. 9,00,000, Current Liabilities Rs. 3,00,000. Calculate Current Ratio.

Current Assets are Rs. 7,50,000 and Working Capital is Rs. 2,50,000. Calculate Current Ratio.

SOLUTION Current Assets = Rs. 7,50,000Working Capital = Rs. 2,50,000Working Capital = Current Assets – Current Liabilities2,50,000 = 7,50,000 – Current LiabilitiesCurrent Liabilities = 7,50,000 – 2,50,000 = Rs. 5,00,000Current ratio = Current assets / Current liabilities=…

Continue ReadingCurrent Assets are Rs. 7,50,000 and Working Capital is Rs. 2,50,000. Calculate Current Ratio.

Working Capital Rs. 1,80,000; Total Debts Rs. 3,90,000; Long-Term Debts Rs. 3,00,000. Calculate Current Ratio.

SOLUTION Total Debts = 3,90,000Long-term Debts = 3,00,000Current Liabilities = Total Debts − Long-term Debts= 3,90,000 − 3,00,000= 90,000 Working Capital = Current Assets − Current Liabilities1,80,000 = Current Assets − 90,000Current…

Continue ReadingWorking Capital Rs. 1,80,000; Total Debts Rs. 3,90,000; Long-Term Debts Rs. 3,00,000. Calculate Current Ratio.

Working Capital is Rs. 9,00,000; Trade payables Rs. 90,000; and Other Current Liabilities are Rs. 2,10,000. Circulate Current Ratio.

SOLUTION Working Capital = Rs. 9,00,000Current Liabilities = Trade Payables + Other Current Liabilities= Rs. 90,000 + Rs. 2,10,000= Rs. 3,00,000Working Capital = Current Assets – Current Liabilities9,00,000 = Current Assets –  Rs. 3,00,000Current Assets = Rs. 9,00,000 + Rs. 3,00,000 = Rs. 12,00,000Current…

Continue ReadingWorking Capital is Rs. 9,00,000; Trade payables Rs. 90,000; and Other Current Liabilities are Rs. 2,10,000. Circulate Current Ratio.

Current Ratio is 2.5, Working Capital is Rs. 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

SOLUTION Current Ratio = Current Assets  /  Current Liabilities2.5 = Current Assets  /  Current LiabilitiesCurrent Assets = 2.5 × Current LiabilitiesWorking Capital = Current Assets - Current Liabilities1,50,000 = 2.5 × Current Liabilities – 1.0 Current Liabilities1,50,000 = 1.5 × Current Liabilities Current Liabilities =…

Continue ReadingCurrent Ratio is 2.5, Working Capital is Rs. 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

Calculate Current Ratio from the following information:    

Particulars Amount (Rs.)Particulars Amount (Rs.)Total Assets5,00,000Non-current Liabilities1,30,000Fixed Tangible Assets2,50,000Non-current Investments1,50,000Shareholders' Funds3,20,000   SOLUTION Total Assets = Fixed Tangible Assets + Non Current Investments + Current Assets5,00,000 = 2,50,000 + 1,50,000 + Current AssetsCurrent Assets…

Continue ReadingCalculate Current Ratio from the following information:    

From the following compute Current Ratio:

 ParticularsAmount(Rs.) ParticularsAmount(Rs.) Trade Receivable (Sundry Debtors)1,80,000 Bills Payable20,000 Prepaid Expenses40,000 Sundry Creditors1,00,000 Cash and Cash Equivalents50,000 Debentures4,00,000 Marketable Securities50,000 Inventories80,000 Land and Building5,00,000 Expenses Payable80,000 SOLUTION Current Assets = Trade Receivables + Pre-paid Expenses + Cash and Cash Equivalents + Marketable…

Continue ReadingFrom the following compute Current Ratio:

X, Y and Z were partners in a firm sharing profits in the ratio of 2: 2: 1. On 31st March, 2020, their Balance Sheet was as follows:  

LiabilitiesAmount(Rs.)AssetsAmount(Rs.)Trade Creditors1,20,000Cash at Bank1,80,000Bills Payable80,000Stock1,40,000General Reserve60,000Sundry Debtors80,000Capital A/cs:Building3,00,000  X - 7,00,000Advance to Y7,00,000  Y - 7,00,000Profit and Loss A/c3,20,000  Z - 60,00014,60,000  17,20,000 17,20,000 Y died on 30th June, 2020. The Partnership Deed provided for the following…

Continue ReadingX, Y and Z were partners in a firm sharing profits in the ratio of 2: 2: 1. On 31st March, 2020, their Balance Sheet was as follows: