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Q.1 Joy Industry Limited started in 2005.This company is showing continuous growth. This company has 97% owned capital. Now this company is planning for expansion as the demand of their product is increasing and they have received good orders for export. This company is entering in a joint venture with Winnie International USA and the same company is going to invest in Joy Industry. The Balance Sheet of Joy Industry Limited as on 31-12-2008 was as follows: - Particular Rs. Particular Rs. 80,000 Plant and Machinery 16,000 Land and Buildings 64,000 Furniture & Fixtures 32,000 | Stock 8,000 | Debtors 8,000 Investments (Short- 8,000 term) 24,000 Cash in hand 2,40,000 Equity Share Capital Capital Reserve 8% Loan on Mortgage 48,000 80,000 32,000 Creditors 24,000 Bank overdraft 24,000 Taxation: 8,000 Current 24,000 Future Profit and Loss A/c 2,40,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, (d) Proprietary Ratio

Q.1 Joy Industry Limited started in 2005.This company is showing continuous growth. This company has 97% owned capital. Now this company is planning for expansion as the demand of their product is increasing and they have received good orders for export. This company is entering in a joint venture with Winnie International USA and the same company is going to invest in Joy Industry. The Balance Sheet of Joy Industry Limited as on 31-12-2008 was as follows: - Particular Rs. Particular Rs. 80,000 Plant and Machinery 16,000 Land and Buildings 64,000 Furniture & Fixtures 32,000 | Stock 8,000 | Debtors 8,000 Investments (Short- 8,000 term) 24,000 Cash in hand 2,40,000 Equity Share Capital Capital Reserve 8% Loan on Mortgage 48,000 80,000 32,000 Creditors 24,000 Bank overdraft 24,000 Taxation: 8,000 Current 24,000 Future Profit and Loss A/c 2,40,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, (d) Proprietary Ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q.1 Joy Industry Limited started in 2005.This company is showing continuous growth. This company has 97% owned capital. Now this company is planning for expansion as the demand of their product is increasing and they have received good orders for export. This company is entering in a joint venture with Winnie International USA and the same company is going to invest in Joy Industry. The Balance Sheet of Joy Industry Limited as on 31-12-2008 was as follows: - Particular Rs. Particular Rs. 80,000 Plant and Machinery 16,000 | Land and Buildings 64,000 | Furniture & Fixtures 32,000 | Stock 8,000 | Debtors 8,000 | Investments (Short- 8,000 term) 24,000 | Cash in hand 2,40,000 Equity Share Capital Capital Reserve 8% Loan on Mortgage 48,000 80,000 32,000 Creditors 24,000 Bank overdraft 24,000 Taxation: 8,000 Current 24,000 Future Profit and Loss A/c 2,40,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, (d) Proprietary Ratio
Transcribed Image Text:Q.1 Joy Industry Limited started in 2005.This company is showing continuous growth. This company has 97% owned capital. Now this company is planning for expansion as the demand of their product is increasing and they have received good orders for export. This company is entering in a joint venture with Winnie International USA and the same company is going to invest in Joy Industry. The Balance Sheet of Joy Industry Limited as on 31-12-2008 was as follows: - Particular Rs. Particular Rs. 80,000 Plant and Machinery 16,000 | Land and Buildings 64,000 | Furniture & Fixtures 32,000 | Stock 8,000 | Debtors 8,000 | Investments (Short- 8,000 term) 24,000 | Cash in hand 2,40,000 Equity Share Capital Capital Reserve 8% Loan on Mortgage 48,000 80,000 32,000 Creditors 24,000 Bank overdraft 24,000 Taxation: 8,000 Current 24,000 Future Profit and Loss A/c 2,40,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, (d) Proprietary Ratio
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