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3.50 Analysis of Financial Statements—CBSE XII
Notes to Accounts

Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Other Current Liabilities
Expenses Payable 50,000 ...
Current Maturities of Long-term Debt 50,000 ...
1,00,000 ...
2. Inventories
Raw Materials 2,75,000 2,00,000
WIP 75,000 50,000
Stores and Spares 50,000 25,000
4,00,000 2,75,000
3. Other Current Assets
Prepaid Expenses 50,000 50,000
Other Advances 1,50,000 50,000
2,00,000 1,00,000
[Ans.: Current Ratio: 2024—2.08 : 1; 2023—4.00 : 1; Liquid Ratio: 2024—1.42 : 1; 2023—2.67 : 1.]

21. 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 8,00,000 6,00,000
(b) Reserves and Surplus 7,00,000 6,00,000
2. Non-Current Liabilities
Long-term Borrowings 2,50,000 3,00,000
3. Current Liabilities
(a) Short-term Borrowings 2,50,000 1,25,000
(b) Trade Payables 3,00,000 2,00,000
(c) Other Current Liabilities 1 2,00,000 1,75,000
Total 25,00,000 20,00,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 8,00,000 6,50,000
(b) Non-current Investments 2,00,000 2,00,000
2. Current Assets
(a) Inventories 2 5,00,000 2,50,000
(b) Trade Receivables 7,50,000 7,00,000
(c) Cash and Cash Equivalents 1,50,000 1,00,000
(d) Other Current Assets 3 1,00,000 1,00,000
Total 25,00,000 20,00,000