The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Rs. Particular...

 

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The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Rs. Particular Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft Taxation: 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Furniture & Fixtures Stock 16,000 4,000 Debtors Current Future Profit and Loss A/c Investments (Short-term) 4,000 Cash in hand 4,000 12,000 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio Rs. 24,000 40,000 16,000 12,000 12,000 4,000 12,000 1,20,000 The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular Rs. Particular Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft Taxation: 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Furniture & Fixtures Stock 16,000 4,000 Debtors Current Future Profit and Loss A/c Investments (Short-term) 4,000 Cash in hand 4,000 12,000 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio Rs. 24,000 40,000 16,000 12,000 12,000 4,000 12,000 1,20,000

Answer rating: 100% (QA)

To compute the Current Ratio and Quick Ratio we need to determine the current assets and current lia... View the full answer