From the following particulars extracted from the books of Ashok & Co. Ltd., compute Current ratio...

 

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From the following particulars extracted from the books of Ashok & Co. Ltd., compute Current ratio and Stock-Turnover Ratio: Bills Receivable Bills Payable Sundry Debtors Sundry Creditors Stock-in-trade 1-1-2002 Rs. 30,000 60,000 1,20,000 75,000 96,000 31-12-2002 Rs. 60,000 30,000 1,50,000 1,05,000 1,44,000 Additional information: a. On 31-12-2002, there were assets: Building Rs. 2,00,000, Cash Rs. 1,20,000 and Cash at Bank Rs. 96,000. b. Cash purchases Rs. 1,38,000 and Purchases Returns were Rs. 18,000. c. Cash sales Rs. 1,50,000 and Sales returns were Rs. 6,000. d. Rate of gross profit 25% on sales and actual gross profit was Rs. 1,50,000. From the following particulars extracted from the books of Ashok & Co. Ltd., compute Current ratio and Stock-Turnover Ratio: Bills Receivable Bills Payable Sundry Debtors Sundry Creditors Stock-in-trade 1-1-2002 Rs. 30,000 60,000 1,20,000 75,000 96,000 31-12-2002 Rs. 60,000 30,000 1,50,000 1,05,000 1,44,000 Additional information: a. On 31-12-2002, there were assets: Building Rs. 2,00,000, Cash Rs. 1,20,000 and Cash at Bank Rs. 96,000. b. Cash purchases Rs. 1,38,000 and Purchases Returns were Rs. 18,000. c. Cash sales Rs. 1,50,000 and Sales returns were Rs. 6,000. d. Rate of gross profit 25% on sales and actual gross profit was Rs. 1,50,000.

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To compute the Current Ratio and Stock Turnover Ratio we need to determine the relevant values based ... View the full answer