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 8,000 24,000 Taxation: Current Future Profit and Loss A/c From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, 2,40,000
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 8,000 24,000 Taxation: Current Future Profit and Loss A/c From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio, 2,40,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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