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What will be the impact of ‘B/R received from trade receivables’ on a Quick Ratio of 1: 1?

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SOLUTION

It will have no effect on the quick ratio because neither the total quick assets nor the total current liabilities are effected It is merely a conversion of one quick asset into another quick asset.

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Previous PostWhat will be the impact of ‘Bills Payable given to Trade Payables’ on a liquid ratio of I: 1? State with reason.

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X and Y are partners sharing profits in the ratio of 3: 1. Z is admitted as a partner for which he pays Rs. 30,000 for goodwill in cash. X, Y and Z decide to share the future profits in equal proportion. You are required to pass a single Journal entry to give effect to the above arrangement

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