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3.24 Analysis of Financial Statements—CBSE XII
Working Note: ` `
Liquid Assets = Trade Receivables + Cash and Cash Equivalents
2024 = ` 7,50,000 + ` 3,00,000 10,50,000
2023 = ` 2,50,000 + ` 2,00,000 4,50,000
Current Liabilities = Short-term Borrowings + Trade Payables + Short-term Provisions
2024 = ` 2,00,000 + ` 3,50,000 + ` 1,50,000 7,00,000
2023 = ` 1,50,000 + ` 1,50,000 + ` 50,000 3,50,000
Illustration 18.
Following is the Balance Sheet of Daily Needs Ltd. as at 31st March, 2024. You are required
to calculate Current 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