Give one limitation of ratio analysis. Post category:Accountancy Reading time:1 mins read SOLUTION Ratio analysis becomes less effective due to price level changes. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostGive two uses of Ratio Analysis. Next PostWhat is meant by ‘Liquidity of Business’? You Might Also Like Quick Ratio of a company is 2: 1. State giving reasons, which of the following transactions would (i) improve, (ii) reduce, (iii) Not change the Quick Ratio: (a) Purchase of goods for cash; (b) Purchase of goods on credit; (c) Sale of goods (costing Rs. 10,000) for Rs. 10,000; (d) Sale of goods (costing Rs. 10,000) for Rs. 11,000; (e) Cash received from Trade Receivables. August 12, 2022 Amrit Ltd. was promoted by Amrit and Bhaskar with an authorised capital of Rs. 10,00,000 divide into 1,00,000 shares of Rs. 10 each. The company decided to issue 1,000, 6% Debentures of Rs. 100 each to Amrit and Bhaskar each for their services in incorporating the company. Pass journal entry July 16, 2022 Pass entries in the firm’s journal for the following on admission of a partner: (i) Machinery be reduced by Rs. 16,000 and Building be appreciated by Rs. 40,000. (ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to Rs. 80,000. (iii) Provision for warranty claims be increased by Rs. 12,000.(iv) Furniture (Book Value Rs. 50,000) is to be reduced by 40%.(v) Furniture (Book Value Rs. 50,000) is to be reduced by 60%. November 3, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Quick Ratio of a company is 2: 1. State giving reasons, which of the following transactions would (i) improve, (ii) reduce, (iii) Not change the Quick Ratio: (a) Purchase of goods for cash; (b) Purchase of goods on credit; (c) Sale of goods (costing Rs. 10,000) for Rs. 10,000; (d) Sale of goods (costing Rs. 10,000) for Rs. 11,000; (e) Cash received from Trade Receivables. August 12, 2022
Amrit Ltd. was promoted by Amrit and Bhaskar with an authorised capital of Rs. 10,00,000 divide into 1,00,000 shares of Rs. 10 each. The company decided to issue 1,000, 6% Debentures of Rs. 100 each to Amrit and Bhaskar each for their services in incorporating the company. Pass journal entry July 16, 2022
Pass entries in the firm’s journal for the following on admission of a partner: (i) Machinery be reduced by Rs. 16,000 and Building be appreciated by Rs. 40,000. (ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to Rs. 80,000. (iii) Provision for warranty claims be increased by Rs. 12,000.(iv) Furniture (Book Value Rs. 50,000) is to be reduced by 40%.(v) Furniture (Book Value Rs. 50,000) is to be reduced by 60%. November 3, 2022
