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Accounting Ratios 3.49
19. Following is the Balance Sheet of Master Services Ltd. as at 31st March, 2024. You are required to
calculate Current Ratio and 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 5,00,000 5,00,000
(b) Reserves and Surplus 5,00,000 4,00,000
2. Non-Current Liabilities
Long-term Borrowings 4,50,000 5,00,000
3. Current Liabilities
(a) Short-term Borrowings 2,00,000 75,000
(b) Trade Payables 3,50,000 2,00,000
Total 20,00,000 16,75,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 6,00,000 5,50,000
(b) Non-current Investments 1,00,000 2,00,000
2. Current Assets
(a) Inventories 4,00,000 2,75,000
(b) Trade Receivables 4,50,000 3,50,000
(c) Cash and Cash Equivalents 2,50,000 2,00,000
(d) Other Current Assets 2,00,000 1,00,000
Total 20,00,000 16,75,000
Inventories include Loose Tools amounting to ` 50,000 in both the years.
[Ans.: Current Ratio: 2024—2.27 : 1; 2023—3.18 : 1; Liquid Ratio: 2024—1.64 : 1; 2023—2.36 : 1.]
20. Following is the Balance Sheet of Ultimate Barcode Ltd. as at 31st March, 2024. You are required to
calculate Current Ratio and Liquid Ratio for the two years.
BALANCE SHEETS as at 31st March, 2024
Particulars Note 31st March, 31st March,
No. 2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 5,00,000 5,00,000
(b) Reserves and Surplus 5,00,000 4,00,000
2. Non-Current Liabilities
Long-term Borrowings 4,00,000 5,50,000
3. Current Liabilities
(a) Short-term Borrowings 1,50,000 75,000
(b) Trade Payables 3,50,000 1,50,000
(c) Other Current Liabilities 1 1,00,000 ...
Total 20,00,000 16,75,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 6,00,000 5,50,000
(b) Non-current Investments 1,00,000 2,00,000
2. Current Assets
(a) Inventories 2 4,00,000 2,75,000
(b) Trade Receivables 4,50,000 3,50,000
(c) Cash and Cash Equivalents 2,50,000 2,00,000
(d) Other Current Assets 3 2,00,000 1,00,000
Total 20,00,000 16,75,000