Question
Calculate quick ratio: Total current liabilities ₹ 2,40,000; total current assets ₹ 4,50,000; Inventories ₹ 70,000; Prepaid Expenses ₹ 20,000
Quick assets = Current Assets – Inventories & Prepaid exps.
= 4,50,000 – (70,000 + 2000)
= Rs. 3,60,000
Quick Ratio = $\frac{360000}{240000}$
Quick Ratio = 1. 5 : 1
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| Particulars | ₹ |
| Capital as on $1^{st} $ April, $2018$ | $40,000$ |
| Capital as on $31^{st} $ March, $2019$ | $50,000$ |
| Additional capital introduced during the year | $7,000$ |
| Profit for the year | $8,000$ |
| Drawings during the year | $?$ |
| Particulars | ₹ | Particulars | ₹ |
| Current investments | 40,000 | Fixed assets | 5,00,000 |
| Inventories | 2,00,000 | Trade creditors | 80,000 |
| Trade debtors | 1,20,000 | Bills Payable | 50,000 |
| Bills receivable | 80,000 | Expenses payable | 20,000 |
| Cash and cash equivalents | 10,000 | Non-Current liability | 3,00,000 |