Question - 07

Following is the Balance sheet of title Machine Ltd. as at March 31, 2014 Calculate current ratio and liquid ratio :

(I) Equity and liabilities :

(1) Shareholder's funds:

  1. Share capital Rs. 24,00,000
  2. Reserve and surplus Rs. 6,00,000
(2)Non current Liabilities 
  1. Long term borrowings Rs. 9,00,000
(3) Current liabilities:
  1. Trade payable Rs. 23,40,000
  2. Short term borrowings Rs. 6,00,000
  3. Short term provisions Rs. 60,000
(II) Assets :

(1) Non current Assets :
  1. Fixed assets (tangible assets Rs. 45,00,000)
(2) Current Assets :

  1. Inventories Rs. 12,00,000
  2. Trade Receivables Rs. 9,00,000
  3. Cash and cash equvalents Rs. 2,28,000
  4. Short term loans and advances Rs. 72,000.
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