The following is the Balance Sheet of New India Ltd; for the year ending 31 March...

 

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The following is the Balance Sheet of New India Ltd; for the year ending 31 March 2021: Liabilities 9% Preference Share Capital Equity Share Capital 8% Debentures Long term loan Bills Payable Sundry Creditors Bank Overdraft Outstanding Expenses Totals Compute the following ratios: Current Ratio i. ii. iii. iv. Acid Test Ratio Absolute Liquid Ratio Debt-Equity Ratio Rs 2,50,000 Goodwill 5,00,000 Land & Building 1,00,000 Plant Assets 50,000 Furniture & Fixture 30,000 Bills Receivables 35,000 Sundry Debtors 15,000 Bank Balance 2,500 9,82,500 Marketable securities Preliminary expenses Stock Totals Rs 50,000 3,25,000 4,00,000 75,000 35,000 45,000 22,500 12,500 2,500 15,000 9,82,500 The following is the Balance Sheet of New India Ltd; for the year ending 31 March 2021: Liabilities 9% Preference Share Capital Equity Share Capital 8% Debentures Long term loan Bills Payable Sundry Creditors Bank Overdraft Outstanding Expenses Totals Compute the following ratios: Current Ratio i. ii. iii. iv. Acid Test Ratio Absolute Liquid Ratio Debt-Equity Ratio Rs 2,50,000 Goodwill 5,00,000 Land & Building 1,00,000 Plant Assets 50,000 Furniture & Fixture 30,000 Bills Receivables 35,000 Sundry Debtors 15,000 Bank Balance 2,500 9,82,500 Marketable securities Preliminary expenses Stock Totals Rs 50,000 3,25,000 4,00,000 75,000 35,000 45,000 22,500 12,500 2,500 15,000 9,82,500

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EXPLANATION Given question we have to calculate Current Ratio Acid Test Ratio Absolute Liquid Ratio ... View the full answer