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Accountancy · 2024 · 3 marks
CBSE 2024 · Region 2 · Set 1 · Q32
Calculate 'Quick Ratio' and 'Debt - Equity Ratio' from the following information: < Total Debt 8,00,000 Inventory 2,20,000 Long Term Debts 6,00,000…
Calculate 'Quick Ratio' and 'Debt - Equity Ratio' from the following information : < Total Debt $\displaystyle 8,00,000$ Inventory $\displaystyle 2,20,000$ Long Term Debts $\displaystyle 6,00,000$ Working Capital $\displaystyle 2,40,000$ Shareholders' Funds $\displaystyle 12,00,000$
Marking-scheme solution
Quick Ratio= Quick Assets / Current Liabilities
Current Liabilities = Total Debt - Long term debt
= ₹$\displaystyle 8,00,000$- ₹$\displaystyle 6,00,000$
= ₹$\displaystyle 2,00,000$
Quick Assets = Current Assets- Inventory
$\displaystyle 2$
Current Assets = Working Capital + Current Liabilities
= ₹$\displaystyle 2,40,000$ + ₹$\displaystyle 2,00,000$
= ₹$\displaystyle 4,40,000$
Quick Assets = ₹$\displaystyle 4,40,000$ - ₹$\displaystyle 2,20,000$
= ₹$\displaystyle 2,20,000$
Quick Ratio= $\displaystyle 2,20,000$/ $\displaystyle 2,00,000$ = $\displaystyle 1.1$ : $\displaystyle 1$
Debt-Equity Ratio= Debt / Equity
Debt= Long term Debt = ₹$\displaystyle 6,00,000$
$\displaystyle 1$
Equity= Shareholder’s Funds = ₹$\displaystyle 12,00,000$
Debt-Equity Ratio = $\displaystyle 6,00,000$ / $\displaystyle 12,00,000$
= $\displaystyle 1$: $\displaystyle 2$ or $\displaystyle 0.5$:$\displaystyle 1$
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.