16 :- State, giving reason, whether the Current Ratio will improve or decline or will have no effect in each of the following transactions if Current Ratio is 2:1;
(a) Cash Paid to Trade Payables.
(b) Bills Payable discharged.
(c) Bills Receivable endorsed to a creditor.
(d) Payment of final Dividend already declared.
(e) Purchase of Stock-in-trade on credit.
(f) Bills Receivable endorsed to a Creditor dishonoured.
(g) Purchase of Stock-in-Trade for cash.
(h) Sale of Fixed Assets (Book Value of Rs 50,000) for Rs 45,000.
(i) Sale of Fixed Assets (Book Value of Rs 50,000) for Rs 60,000.
17 :- From the following information, calculate Liquid Ratio:
18 :- From the following information, calculate Quick Ratio :
19 :- Current Assets Rs 6,00,000; Inventories Rs 1,20,000; Working Capital Rs 5,04,000. Calculate Quick Ratio.
20 :- Quick Assets Rs 3,00,000; Inventory (Stock) Rs 80,000; Prepaid Expenses Rs 20,000; Working Capital Rs 2,40,000. Calculate Current Ratio.