What will be the impact of ‘Cash Paid to trade Payables on a Current Ratio of 2: 1? State the reason. Post category:Accountancy Reading time:1 mins read SOLUTION Current Ratio will improve because both Current assets and current liabilities are decreased by the same amount. 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 PostThe current ratio of a company is 2: I. Stale giving reason whether purchase of goods on credit will increase, decrease or not change the ratio. (C.B.S.E. 2020. Delhi) Next PostWhat will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1: 1? State the reason. You Might Also Like At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows: (a) A Provision for Doubtful Debts @ 10% was made on Sundry Debtors (Sundry Debtors Rs. 50,000). (b) Creditors were written back by Rs. 5,000. (c) Building was appreciated by 20% (Book Value of Building Rs. 2,00,000). (d) Unrecorded Investments were valued at Rs. 15,000. (e) A Provision of Rs. 2,000 was made for an Outstanding Bill for repairs. (f) Unrecorded Liability towards suppliers was Rs. 3,000. Pass necessary Journal entries. August 1, 2022 Om and Shyam are sharing profits and losses equally. With effect from 1st April, 2022, they agree to share profits in the ratio of 4: 3. Calculate individual partner’s gain or sacrifice due to the change in ratio. October 18, 2022 From the following information, calculate any two of the following ratios: (i) Current Ratio; (ii) Debt to Equity Ratio; and (iii) Operating Ratio. Revenue from Operations (Net Sales) Rs. 1,00,000; cost of Revenue from Operations (Cost of Goods Sold) was 80% of sales; Equity Share Capital Rs. 7,00,000; General Reserve Rs. 3,00,000; Operating Expenses Rs. 10,000; Quick Assets Rs. 6,00,000; 9% Debentures Rs. 5,00,000; Closing Inventory Rs. 50,000; Prepaid Expenses Rs. 10,000 and Current Liabilities Rs. 4,00,000. August 17, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows: (a) A Provision for Doubtful Debts @ 10% was made on Sundry Debtors (Sundry Debtors Rs. 50,000). (b) Creditors were written back by Rs. 5,000. (c) Building was appreciated by 20% (Book Value of Building Rs. 2,00,000). (d) Unrecorded Investments were valued at Rs. 15,000. (e) A Provision of Rs. 2,000 was made for an Outstanding Bill for repairs. (f) Unrecorded Liability towards suppliers was Rs. 3,000. Pass necessary Journal entries. August 1, 2022
Om and Shyam are sharing profits and losses equally. With effect from 1st April, 2022, they agree to share profits in the ratio of 4: 3. Calculate individual partner’s gain or sacrifice due to the change in ratio. October 18, 2022
From the following information, calculate any two of the following ratios: (i) Current Ratio; (ii) Debt to Equity Ratio; and (iii) Operating Ratio. Revenue from Operations (Net Sales) Rs. 1,00,000; cost of Revenue from Operations (Cost of Goods Sold) was 80% of sales; Equity Share Capital Rs. 7,00,000; General Reserve Rs. 3,00,000; Operating Expenses Rs. 10,000; Quick Assets Rs. 6,00,000; 9% Debentures Rs. 5,00,000; Closing Inventory Rs. 50,000; Prepaid Expenses Rs. 10,000 and Current Liabilities Rs. 4,00,000. August 17, 2022