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 asthe 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 samecompany is going to invest in Joy Industry.The Balance Sheet of Joy Industry Limited as on 31-12-2008 was as follows: -ParticularEquity Share CapitalCapital Reserve8% Loan on MortgageRs.ParticularRs.80,000 Plant and Machinery16,000 Land and Buildings64,000 | Furniture & Fixtures32,000 Stock8,000 Debtors8,000 Investments (Short-8,000 term)24,000 Cash in hand2,40,00048,00080,00032,000Creditors24,000Bank overdraft24,000Taxation:8,000Current24,000FutureProfit and Loss A/c2,40,000From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt-Equity Ratio,(d) Proprietary Ratio

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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. Equity Share Capital Capital Reserve 8% Loan on Mortgage 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 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. Equity Share Capital Capital Reserve 8% Loan on Mortgage 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 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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