***** Solved By CA Naveen Kumar Agrawal *****

BALANCE SHEET AS ON 31.03.????

LIABILITIES AMOUNT Amount Assets

Share Captial: W. N. - 10 200000.00 Fixed Assets

Reserve & Surplus: Given 100000.00 Current Assets:

Cash & Receivables
Current Liabilities: W.N.- 2(i) 100000.00 Stock
Bank Over Draft Given 60000.00
Other Current Liabilities W.N.- 3 40000.00

400000.00

Dated: 27-May-2019
Place: Chandigarh

1 Current Ratio = CA/CL

1.75 = CA/CL
CA = 1.75*CL

2 Working Capital = CA - CL
75000 = 1.75*CL - CL
75000 = 0.75*CL
CL = 75000/0.75
(i) CL = 100000.00
CA = 1.75*CL
CA = 1.75*100000
(ii) CA = 175000.00

3 Other Current Liabilities = Total Current Liabilities - Bank Over Draft

= 100000 - 40000
= 60000

4 Total Assets = Total Liabilities

5 Proprietary Ratio = Proprietors' Fund/ Total Assets

6 Proprietary Ratio = Proprietors' Fund/ Total Liabilities From 4 & 5

7 Total Liabilities = Proprietors' Fund + Current Liabilities as per the given information
 8 Proprietary Ratio = Proprietors' Fund/(Proprietors' Fund + Current Liabilities) From 6 & 7

9 0.75 = PF/(PF + 100000)

PF = 0.75*PF + 0.75*100000
PF - 0.75*PF = 75000
0.25*PF = 75000
PF = 75000/0.25
PF = 300000
10 PF = Share Capital + R & S
300000 = Share Capital + 100000
Share Capital = 300000-100000
Share Capital = 200000

Liquid Liabilities = Current Liabilities - B.O.D.

Liquid Liabilities = 100000 - 60000
Liquid Liabilities = 40000
Liquid Assets = Current Assets - Stock
Liquid Assets = 175000 - Stock

11 Liquid Ratio = Liquid Assets/Liquid Liabilities

1.15 = (175000 - Stock)/40000
40000*1.15 = 175000 - Stock
Stock = 175000 - 46000
Stock = 129000

12 Liquid Assets = 175000 - Stock

Liquid Assets = 175000 - 129000
Liquid Assets = 46000
grawal *****

Amount Amount

(Bal. Fig.) 225000.00

W.N.- 2(ii) 175000.00

W. N. - 12 46000.00
W. N. - 11 129000.00

400000.00

From 4 & 5

as per the given information

From 6 & 7