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The Balance Sheet of Punjab Auto Limited as on 31‐12‐2002 was as follows: Particulars Amount(Rs.) Particulars Amount(Rs.) Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft Taxation: Current Future Profit and Loss A/c 40,000 8,000 32,000 16,000 4,000 4,000 4,000 12,000 Plant and Machinery Land and Buildings Furniture & Fixtures Stock Debtors Investments (Short‐ term) Cash in hand 24,000 40,000 16,000 12,000 12,000 4,000 12,000 1,20,000 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt‐Equity Ratio

The Balance Sheet of Punjab Auto Limited as on 31‐12‐2002 was as follows: Particulars Amount(Rs.) Particulars Amount(Rs.) Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft Taxation: Current Future Profit and Loss A/c 40,000 8,000 32,000 16,000 4,000 4,000 4,000 12,000 Plant and Machinery Land and Buildings Furniture & Fixtures Stock Debtors Investments (Short‐ term) Cash in hand 24,000 40,000 16,000 12,000 12,000 4,000 12,000 1,20,000 1,20,000 From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt‐Equity 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 The Balance Sheet of Punjab Auto Limited as on 31‐12‐2002 was as follows:
Particulars Amount(Rs.) Particulars Amount(Rs.)
Equity Share Capital
Capital Reserve
8% Loan on Mortgage
Creditors
Bank overdraft
Taxation:
Current
Future
Profit and Loss A/c
40,000
8,000
32,000
16,000
4,000
4,000
4,000
12,000
Plant and Machinery
Land and Buildings
Furniture & Fixtures
Stock
Debtors
Investments (Short‐
term)
Cash in hand
24,000
40,000
16,000
12,000
12,000
4,000
12,000
1,20,000 1,20,000
From the above, compute (a) the Current Ratio, (b) Quick Ratio, (c) Debt‐Equity
Ratio, and (d) Proprietary Ratio.

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