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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