CBSE 2025, Set 3

Question

(a) Calculate 'Current Ratio' and 'Quick Ratio' from the following information:
Working capital: ₹ 4,00,000
Inventories: ₹ 2,40,000
Total Debt: ₹ 18,00,000
Non-Current Liabilities: ₹ 12,00,000

Edvaya · Accepted Answer

The correct answer is Subjective. **Step 1: Calculate Current Liabilities** Total Debt = Non-Current Liabilities + Current Liabilities 18,00,000 = 12,00,000 + Current Liabilities Current Liabilities = ₹ 6,00,000. **Step 2: Calculate Current Assets** Working Capital = Current Assets - Current Liabilities 4,00,000 = Current Assets - 6,00,000 Current Assets = ₹ 10,00,000. **Step 3: Calculate Quick Assets** Quick Assets = Current Assets - Inventories Quick Assets = 10,00,000 - 2,40,000 = ₹ 7,60,000. **Answer:** Current Ratio = Current Assets / Current Liabilities = 10,00,000 / 6,00,000 = **1.67 : 1** (or 5:3). Quick Ratio = Quick Assets / Current Liabilities = 7,60,000 / 6,00,000 = **1.27 : 1** (or 19:15).

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Accountancy > Financial Statements Analysis > Accounting Ratios

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