Page 68 - afs12

3.40 Analysis of Financial Statements—CBSE XII
5. Following is the Balance Sheet of ABC Limited as at 31st March, 2024:

Particulars Note No. `
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 4,80,000
(b) Reserves and Surplus 1,20,000
2. Non-Current Liabilities
Long-term Borrowings 3,00,000
3. Current Liabilities
(a) Short-term Borrowings 68,000
(b) Trade Payables (Creditors) 4,00,000
(c) Short-term Provisions 12,000
Total 13,80,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets—Property, Plant and Equipment 9,00,000
2. Current Assets
(a) Inventories (Stock) 2,40,000
(b) Trade Receivables (Debtors) 1,80,000
(c) Cash and Cash Equivalents 60,000
Total 13,80,000

Notes:
1. Long-term Borrowings are 3,000, 10% Debentures of ` 100 each.
2. Short-term Provisions is towards Provision for Tax.
Calculate the following Ratios:
(i) Current Ratio, and (ii) Liquid Ratio.
What conclusions do you draw about the Company on the basis of these Ratios?
[Ans.: Current Ratio = 1 : 1; Liquid Ratio = 0.50 : 1.]
6. From the following Balance Sheet of Ramji Ltd., calculate Current Ratio:
BALANCE SHEET as at 31st March, 2024
Particulars Note No. `

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 2,60,000
(b) Reserves and Surplus 90,000
2. Current Liabilities
(a) Short-term Borrowings (Bank Overdraft) 20,000
(b) Trade Payables 60,000
Total 4,30,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets—Property, Plant and Equipment 2,60,000
2. Current Assets
(a) Inventory (Including Loose Tools ` 10,000) 72,000
(b) Trade Receivables 32,000
(c) Cash and Cash Equivalents 56,000
(d) Other Current Assets (Accrued Income) 10,000
Total 4,30,000
[Ans.: Current Ratio = 2 : 1.]