Which one of the following arrangements represents the order of liquidity?

Cash, Bills Receivable, Stock, Debtors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Cash, Bills Receivable, Debtors, Stock

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Cash, Stock, Bills Receivable, Debtors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Cash, Debtors, Bills Receivable, Stock

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Cash, Bills Receivable, Debtors, Stock
The assets account of the relatively permanent nature would continue in the business for a longer time whereas the less permanent or more liquid accounts will change their forms in the near future and are likely to become cash or cash equivalent. the correct order of liquidity is: Cash, Bills receivables, Debtors, Stock.

Suggest Corrections

Similar questions

	(Rs)
Opening balance of debtors	$14, 00, 000$
Opening balance of bills receivable	$7, 00, 000$
Closing balance of bills receivable	$3, 50, 000$
Cheque dishonoured	$27, 000$
Cash received from debtors	$10, 75, 000$
Cheque received and deposited in the bank	$8, 25, 000$
Discount allowed	$37, 500$
Irrecoverable amount	$17, 500$
Returns Inwards	$28, 000$
Bills receivable received from customers	$1, 05, 000$
Bills receivable matured	$2, 80, 000$
Bills discounted	$65, 000$
Bills endorsed to creditors	$70, 000$

	₹
Bills Receivables as on 1st April, 2018	7,800
Debtors as on 1st April, 2018	30,800
Cash received on maturity of Bills Receivable during the year	20,900
Cash received from Debtors	70,000
Bad Debts written off	4,800
Returns Inward	8,700
Bills Receivable dishonoured	1,800
Bills Receivable on 31st March, 2019	6,000
Debtors as on 31st March, 2019	25,500
Cash Sales during the year	15,900

	(Rs)
Opening stock	$30, 000$
Closing stock	$25, 000$
Opening creditors	$50, 000$
Closing debtors	$75, 000$
Discount allowed by creditors	$1, 500$
Discount allowed to customers	$2, 500$
Cash paid to creditors	$1, 35, 000$
Bills payable accepted during the period	$30, 000$
Bills receivable received during the period	$75, 000$
Cash received from customers	$2, 20, 000$
Bill receivable dishonored	$3, 500$
Purchases	$2, 95, 000$

25 %

85, 000

4, 00, 000 = 3, 00, 000 \times \frac{100}{75}

Join BYJU'S Learning Program