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Accounting Ratios                                                             3.23
                     Illustration 17.
                     Following  is  the  Balance  Sheet  of  Computers  India  Ltd.  as  at  31st  March,  2024.  You  are
                     required to calculate Liquid Ratio for the two years.
                                                 BALANCE SHEET as at 31st March, 2024
                     Particulars                                             Note   31st March,   31st March,
                                                                               No.   2024 (`)   2023 (`)
                      I.  EQUITY AND LIABILITIES
                        1.  Shareholders’ Funds
                          (a)  Share Capital                                         10,00,000   7,50,000
                          (b)  Reserves and Surplus                                  5,00,000   2,00,000
                        2.  Non-Current Liabilities
                          Long-term Borrowings                                       15,00,000    5,00,000
                        3.   Current Liabilities
                          (a)  Short-term Borrowings                          1      2,00,000    1,50,000
                          (b)  Trade Payables                                        3,50,000    1,50,000
                          (c)  Short-term Provisions                          2      1,50,000    50,000
                        Total                                                        37,00,000    18,00,000
                      II.  ASSETS
                        1.  Non-Current Assets
                          (a)  Property, Plant and Equipment and Intangible Assets:
                              —Property, Plant and Equipment                         14,00,000    7,50,000
                          (b)  Non-current Investments                               5,00,000    1,50,000
                        2.  Current Assets
                          (a)  Inventories                                    3      7,50,000    4,50,000
                          (b)  Trade Receivables                              4      7,50,000    2,50,000
                          (c)  Cash and Cash Equivalents                             3,00,000    2,00,000
                        Total                                                        37,00,000    18,00,000

                     Notes to Accounts
                       Particulars                                                  31st March,   31st March,
                                                                                      2024 (`)   2023 (`)
                       1.  Short-term Borrowings
                          Bank Overdraft                                               1,50,000    1,00,000
                          Loan from Directors                                           50,000    50,000
                                                                                       2,00,000  1,50,000
                       2.  Short-term Provisions
                          Provision for Expenses                                        50,000    25,000
                          Provision for Tax                                            1,00,000    25,000
                                                                                       1,50,000    50,000
                       3.  Inventories
                          Materials                                                    3,25,000    1,50,000
                          Stock-in-trade                                               1,75,000    1,00,000
                          Finished Goods                                               1,50,000    1,50,000
                          Loose Tools                                                  1,00,000    50,000
                                                                                       7,50,000    4,50,000
                       4.  Trade Receivables
                          Sundry Debtors                                               6,00,000    2,25,000
                          Bills Receivable                                             1,50,000   25,000
                                                                                       7,50,000   2,50,000
                     Solution:
                     Liquid Ratio                         31st March, 2024         31st March, 2023
                       Liquid or Quick Assets                 `  10,50,000             `  4,50,000
                     =                                                              =
                         Current Liabilities                   ` 7,00,000              `  3,50,000
                                                            =  1.50 : 1              = 1.29 : 1
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