What will be the impact of ‘Cash paid to Trade Payables’ on a Current ratio of 8: 1? State with reason. Post category:Accountancy Reading time:1 mins read SOLUTION Current ratio Will decrease 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 PostWhat will be the impact of ‘Cash Paid to Trade Payables’ on a Current ratio of 1: 1? State the reason. Next PostWhat will be the impact of ‘Cash collected from trade receivables’ on a Current ratio of 2: 1? State with reason. You Might Also Like Kajal, Neerav and Alisha are partners in a firm sharing profits in the ratio of 3: 2: 1. They decided to admit Rajan, their landlord as a partner in the firm. Rajan brought sufficient amount of capital and his share of goodwill premium. The accountant of the firm passed the entry of rent paid for the building to Rajan in ‘Profit and Loss Appropriation Account’. Is he correct in doing so? Give reason in support of your answer. (Al 2015 C) October 7, 2022 What is meant by the term ‘Cash Flows’? (C.B.S.E. 2020, Kerala) October 4, 2022 State with reason whether the following transactions will increase, decrease or not change the ‘Return on Investment’ Ratio: (i) Purchase of machinery worth Rs. 10,00,000 by issue of equity shares. (ii) Charging depreciation of Rs. 25,000 on machinery. (iii) Redemption of debentures by cheque Rs. 2,00,000. (iv) Conversion of 9% Debentures of Rs. 1,00,000 into equity shares. August 17, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Kajal, Neerav and Alisha are partners in a firm sharing profits in the ratio of 3: 2: 1. They decided to admit Rajan, their landlord as a partner in the firm. Rajan brought sufficient amount of capital and his share of goodwill premium. The accountant of the firm passed the entry of rent paid for the building to Rajan in ‘Profit and Loss Appropriation Account’. Is he correct in doing so? Give reason in support of your answer. (Al 2015 C) October 7, 2022
State with reason whether the following transactions will increase, decrease or not change the ‘Return on Investment’ Ratio: (i) Purchase of machinery worth Rs. 10,00,000 by issue of equity shares. (ii) Charging depreciation of Rs. 25,000 on machinery. (iii) Redemption of debentures by cheque Rs. 2,00,000. (iv) Conversion of 9% Debentures of Rs. 1,00,000 into equity shares. August 17, 2022