Following is the Balance Sheet of Title Machine Ltd. as at March 31, 2017.

Particulars
Amount

Rs.

I. Equity and Liabilities

1. Shareholders’ funds

a) Share capital
24,00,000

b) Reserves and surplus
6,00,000

2. Non-current liabilities

a) Long-term borrowings
9,00,000

3. Current liabilities

a) Short-term borrowings
6,00,000

b) Trade payables
23,40,000

c) Short-term provisions
60,000

Total 69,00,000

II. Assets

1. Non-current Assets

a) Fixed assets

Tangible assets
45,00,000

2. Current Assets

a) Inventories
12,00,000

b) Trade receivables
9,00,000

c) Cash and cash equivalents
2,28,000

d) Short-term loans and advances
72,000

Total 69,00,000

Calculate Current Ratio and Liquid Ratio.

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Solution

1. Current Ratio

Current Assets = Inventories +Trade Receivables + Cash + Short term Loans and Advances

= 12,00,000 + 9,00,000 + 2,28,000 + 72,000

= Rs 24,00,000

Current Liabilities = Trade Payables + Short-term Borrowings + Short-term Provisions

= 23,40,000 + 6,00,000 + 60,000

= Rs 30,00,000

2. Quick Ratio

Quick Assets = Trade Receivables + Cash + Short term Loans and Advances

= 9,00,000 + 2,28,000 + 72,000

= Rs 12,00,000

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Similar questions

Following is the Balance Sheet of Title Machine Ltd. as on March 31, 2006.

Liabilities	Amount Rs	Assets	Amount Rs
Equity Share Capital	24,000	Buildings	45,000
8% Debentures	9,000	Stock	12,000
Profit and Loss	6,000	Debtors	9,000
Bank Overdraft	6,000	Cash in Hand	2,280
Creditor	23,400	Prepaid Expenses	720
Provision for Taxation	600
	69,000		69,000

Calculate Current Ratio and Liquid Ratio.

Following are the balance sheets of Alpha Ltd. as at March 31^st, 2016 and 2017:

Particulars	2016 Rs.	2017 Rs.
I. Equity and Liabilities
Equity share capital	2,00,000	4,00,000
Reserves and surplus	1,00,000	1,50,000
Long-term borrowings	2,00,000	3,00,000
Short-term borrowings	50,000	70,000
Trade payables	30,000	60,000
Short-term provisions	20,000	10,000
Other current liabilities	20,000	30,000
Total	6,20,000	10,20,000
II. Assets
Fixed assets	2,00,000	5,00,000
Non-current investments	1,00,000	1,25,000
Current investments	60,000	80,000
Inventories	1,35,000	1,55,000
Trade receivables	60,000	90,000
Short term loans and advances	40,000	60,000
Cash at bank	25,000	10,000
Total	6,20,000	10,20,000

Following are the balance sheets of Beta Ltd. at March 31^st, 2016 and 2017:

Particulars	2017 Rs.	2016 Rs.
I. Equity and Liabilities
Equity share capital	4,00,000	3,00,000
Reserves and surplus	1,50,000	1,00,000
Loan from IDBI	3,00,000	1,00,000
Short-term borrowings	70,000	50,000
Trade payables	60,000	30,000
Short-term provisions	10,000	20,000
Other current liabilities	1,10,000	1,00,000
Total	11,00,000	7,00,000
II. Assets
Fixed assets	4,00,000	2,20,000
Non-current investments	2,25,000	1,00,000
Current investments	80,000	60,000
Stock	1,05,000	90,000
Trade receivables	90,000	60,000
Short term loans and advances	1,00,000	85,000
Cash and cash equivalents	1,00,000	85,000
Total	11,00,000	7,00,000

Following is the Balance Sheet of Mevanca Limited as at 31st March, 2017:

Mevanca Limited BALANCE SHEET
as at 31st March, 2017:
Particulars	Note No.	31st March, 2017 (₹)	31st March, 2016 (₹)
I. EQUITY AND LIABILITIES
1. Shareholders' Funds
(a) Share Capital		3,00,000	1,00,000
(b) Reserves and Surplus	1	25,000	1,20,000
2. Non-Current Liabilities
Long-term Borrowings	2	80,000	60,000
3. Current Liabilities
(a) Trade Payables		6,000	20,000
(b) Short-term Provisions	3	68,000	70,000
Total		4,79,000	3,70,000
II. ASSETS
1. Non-Current Assets
Fixed Assets	4	3,36,000	1,92,000
2. Current Assets
(a) Inventories		67,000	60,000
(b) Trade Receivables		51,000	65,000
(c) Cash and Cash Equivalents		25,000	49,000
(d) Other Current Assets		…	4,000
Total		4,79,000	3,70,000

Notes to Accounts

Particulars	31st March, 2017 (₹)	31st March, 2016 (₹)
1. Reserves and Surplus
Surplus, i.e., Balance in Statement of Profit and Loss	25,000	1,20,000
	25,000	1,20,000
2. Long-term Borrowings
10% Long-term Loan	80,000	60,000
	80,000	60,000
3. Short-term Provisions
Provision for Tax	68,000	70,000
	68,000	70,000
4. Fixed Assets
Machinery	3,84,000	2,15,000
Accumulated Depreciation	(48,000)	(23,000)
	3,36,000	1,92,000

Additional Information:
(i) Additional loan was taken on 1st July, 2016.
(ii) Tax of ₹ 53,000 was paid during the year.
Prepare Cash Flow Statement.

Following is the Balance Sheet of Title Machine Limited as on March 31, 2006.
$\begin{matrix} Capital and Liabilities & Amt. (Rs.) & Assets & Amt. (Rs.) Equity Share Capital & 24,000 & Buildings & 45,000 8% Debentures & 9,000 & Stock & 12,000 Profit and Loss & 6,000 & Debtors & 9,000 Bank Overdraft & 6,000 & Cash in Hand & 2,280 Creditors & 23,400 & Prepaid Expenses & 720 Provision for Taxation & 600 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 69, 000 - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 69, 000 - ------ - \end{matrix}$

Calculate Current Ratio and Liquid Ratio.

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Particulars	Amount Rs.
I. Equity and Liabilities
1. Shareholders’ funds
a) Share capital	24,00,000
b) Reserves and surplus	6,00,000
2. Non-current liabilities
a) Long-term borrowings	9,00,000
3. Current liabilities
a) Short-term borrowings	6,00,000
b) Trade payables	23,40,000
c) Short-term provisions	60,000
Total	69,00,000
II. Assets
1. Non-current Assets
a) Fixed assets
Tangible assets	45,00,000
2. Current Assets
a) Inventories	12,00,000
b) Trade receivables	9,00,000
c) Cash and cash equivalents	2,28,000
d) Short-term loans and advances	72,000
Total	69,00,000