From the following particulars pertaining to Assets and Liabilities of a company calculate and interpret: a. Current Ratio;b. Liquidity Ratio;c. Proprietary Ratio;d. Debt-Equity Ratio;e.Capital Gearing Ratio. Balance Sheet as on 31st December 2020LiabilitiesAmount (Rs)AssetsAmount (Rs)5,000 Equity Shares of Rs 10 each 5,00,000.00 Land & Building 5,00,000.008%, 2000 Preference Shares of Rs 100 each 2,00,000.00 Plant & Machinery 6,00,000.009 % Debentures of Rs 100 each 4,00,000.00 Sundry Debtors 2,00,000.00Reserves & Surplus 3,00,000.00Stock2,40,000.00Sundry Creditors 1,50,000.00Cash in hand 55,000.00Bank Overdraft 50,000.00Prepaid Expenses 5,000.00 TOTAL16,00,000.00TOTAL16,00,000.00don't give hand written answers

Current Ratio = Current Asset / Current Liabilities Current Assets = Sundry Debtors + Stock +Cash in…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Liabilities	Amount (Rs)	Assets	Amount (Rs)
5,000 Equity Shares of Rs 10 each	5,00,000.00	Land & Building	5,00,000.00
8%, 2000 Preference Shares of Rs 100 each	2,00,000.00	Plant & Machinery	6,00,000.00
9 % Debentures of Rs 100 each	4,00,000.00	Sundry Debtors	2,00,000.00
Reserves & Surplus	3,00,000.00	Stock	2,40,000.00
Sundry Creditors	1,50,000.00	Cash in hand	55,000.00
Bank Overdraft	50,000.00	Prepaid Expenses	5,000.00


TOTAL	16,00,000.00	TOTAL	16,00,000.00

From the following particulars pertaining to Assets and Liabilities of a company calculate and interpret: a. Current Ratio; b. Liquidity Ratio; c. Proprietary Ratio; d. Debt-Equity Ratio; e.Capital Gearing Ratio.