What will be the impact of increase in Current liabilities on Working Capital turnover ratio? State with reason. Post category:Accountancy Reading time:1 mins read SOLUTION Working Capital turnover ratio will increase because increase in Current liabilities will result in decrease in Working Capital. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostTrade Payables turnover ratio of a Company is 5 times. What will be the impact of ‘Credit purchase’ of Rs. 50,000 on this ratio? State with reason. Next PostWhat does a low working capital turnover ratio indicates? You Might Also Like Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of ‘Economic Relationship’. (C.B.S.E. 2016, Delhi) September 27, 2022 X and Y are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/4th share in the profits. Z contributed following assets towards his capital and for his share of goodwill: Stock Rs. 60,000; Debtors Rs. 80,000; Land Rs. 1,00,000, Plant and Machinery Rs. 40,000. On the date of admission of Z, the goodwill of the firm was valued at Rs. 6,00,000. Pass necessary Journal entries in the books of the firm on Z’s admission. August 1, 2022 Cash Sales Rs. 2,20,000; Credit Sales Rs. 3,00,000; Sales Return Rs. 20,000; Gross Profit Rs. 1,00,000; Operating Expenses Rs. 25,000; Non-operating incomes Rs. 30,000; Non-operating Expenses Rs. 5,000. Calculate Net Profit Ratio. August 17, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Distinguish between ‘Dissolution of Partnership’ and ‘Dissolution of Partnership Firm’ on the basis of ‘Economic Relationship’. (C.B.S.E. 2016, Delhi) September 27, 2022
X and Y are partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2019, they admit Z as a partner for 1/4th share in the profits. Z contributed following assets towards his capital and for his share of goodwill: Stock Rs. 60,000; Debtors Rs. 80,000; Land Rs. 1,00,000, Plant and Machinery Rs. 40,000. On the date of admission of Z, the goodwill of the firm was valued at Rs. 6,00,000. Pass necessary Journal entries in the books of the firm on Z’s admission. August 1, 2022
Cash Sales Rs. 2,20,000; Credit Sales Rs. 3,00,000; Sales Return Rs. 20,000; Gross Profit Rs. 1,00,000; Operating Expenses Rs. 25,000; Non-operating incomes Rs. 30,000; Non-operating Expenses Rs. 5,000. Calculate Net Profit Ratio. August 17, 2022