DK Goel Accountancy Class 12 Solutions Vol 2 Chapter 5 Accounting Ratios which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. Learn more concepts in Accountancy, however, the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is required.
DK Goel Solutions Class 12 – Chapter 5 – Part B
Question 1
From the following, compute the current ratio.
| ₹ | |
| Non-Current Investments | 1,00,000 |
| Current Investments | 40,000 |
| Inventories (including loose tools of ₹ 50,000/-) | 2,80,000 |
| Trade Receivables: | |
| Sundry Debtors | 1,60,000 |
| Bills Receivables | 20,000 |
| Trade Payables: | |
| Sundry Creditors | 1,20,000 |
| Bills Payables | 10,000 |
| Long-term Borrowings | 2,00,000 |
| Short-term Borrowings | 50,000 |
| Short-term Provision (Provision for Tax) | 20,000 |
| Cash and Bank Balance | 30,000 |
Solution:
Current Assets = Current Investments + Inventories (Excluding Loose Tools) + Trade Receivables (Sundry Debtors + Bills Receivables) + Cash and Bank Balance
= 40,000 + 2,30,000 + 1,60,000 + 20,000 + 30,000
= ₹. 4,80,000/-
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
= ₹. 2,00,000/-
Question 2
Following particulars are given to you:
| ₹ | ||
| Trade Investmests | 2,50,000 | |
| Marketeable Secuities | 40,000 | |
| Tangible Fixed Assets | 6,00,000 | |
| Intangible Assets (Goodwill) | 1,00,000 | |
| Trade Receivables | 2,00,000 | 1,80,000 |
| Less: Provision for Doubtful Debts | 20,000 | |
| Cash and Bank Balance | 80,000 | |
| Trade Payables | 1,20,000 | |
| Rent Payables | 10,000 | |
| Dividend Payable | 30,000 | |
| Inventories | 3,90,000 | |
| Long term Borrowings (8% Debentures) | 2,80,000 | |
| Short term Borrowings (Bank Overdraft) | 25,000 | |
| Short term Provisions: | ||
| Provisions for Tax | 55,000 | |
| Income Tax paid in Advance | 30,000 |
Calculate the Liquidity Ratios.
Solution:
Liquidity Ratios include the following 2 ratios. Namely,
- Current ratio
- Quick ratio
Current Assets = Marketable Securities + Trade Receivables + Cash and Bank Balance + Inventories + Income Tax paid in advance
= 40,000 + 1,80,000 + 80,000 + 3,90,000 + 30,000
= ₹. 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
= ₹. 2,40,000/-
Liquid Assets = Current Assets – Inventories – Income Tax Paid in Advance
= 7,20,000 – 3,90,000 – 30,000
= 3,00,000
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| DK Goel Accountancy Solutions Class 12 – Part B (Chapter wise) | ||
| Chapter 1 Financial Statements of Companies (As per Schedule III) | Chapter 2 Financial Statements Analysis | |
| Chapter 3 Tools for Financial Analysis: Comparative Statements | Chapter 4 Common Size Statements | |
| Chapter 6 Cash Flow Statement (As per AS – 3 Revised) | ||
| Important Topics in Accountancy: |
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