Problem: 1

From the following information, you are required to compute Current ratio, Quick Ratio and
comment on its position.

Stock: Rs. 1, 25,000 Bank overdraft: Rs. 1, 10,000

Sundry debtors: Rs. 75,000 Bills payable: Rs. 20,000
Outstanding Expenses: Rs. 40,000 Bills Receivables: Rs. 80,000
Short term investments: Rs.20, 000 Cash in hand: Rs. 50,000
Cash at Bank: Rs. 50,000 Sundry Creditors: Rs.40, 000

Problem: 2
Current liabilities of a company are Rs. 3, 00,000. Its current ratio is 3:1 and quick ratio is
0.75:1. Calculate the value of stock

Problem: 3
Working capital of a company is Rs 300000. Its current ratio is 2.5 and quick ratio is 1.5.
Predict the value of:
 Current Assets.
 Current liabilities and
 Closing stock

Problem: 4
From the following compute Quick ratio of an organisation
Cash in hand: Rs. 5,000 Bills payable: Rs. 10,000
Cash at Bank: Rs. 3,000 Sundry Creditors: Rs 5,000
Stock: Rs 5,000 Outstanding expenses: Rs. 25,000
Sundry debtors: Rs. 20,000 Bank loan: Rs 15,000
Prepaid expenses: Rs 2,000

Problem: 5
The ratio’s relating to Cosmos ltd are given as follows:
Gross Profit Ratio: 15%
Stock Velocity: 6 Months
Debtors Velocity: 3 Months
Creditors Velocity: 3 Months
Gross Profit for the year ending 31st Dec 2010 amounted to Rs 60000. Closing stock is more
by 5000 than opening stock. Find out:
1. Sales.
2. Closing Stock.
3. Debtors
4. Creditors.
Problem: 6
From the following is the balance sheet of BSL ltd on 31-12-2012

Liabilities Amount Assets Amount

Equity capital 10,00,000 Net fixed assets 8,00,000
Reserves 4,00,000 Stock 2,00,000
Secured loans 3,00,000 Debtors 6,00,000
Short term liabilities 4,00,000 Loan and Advances 5,00,000
21,00,000 21,00,000
You are required to compute: Debt equity ratio, Quick ratio, current ratio, and Net worth
ratio and fixed assets to net worth ratio

Problem: 7
Stock turnover ratios is 5 times .Average stock is Rs. 60,000. Rate of gross profit is 20% on
sales. Calculate sale and gross profit.

Problem: 8

Following is the details of Chaitanya Ltd,

Stock Velocity 6 Gross profit ratio 20%

Capital Turnover Ratio 2 Times Debtor’s velocity 2 Months
Fixed assets turnover ratio 4 Times Creditor’s velocity 73 Days
 The gross profit was Rs 60000. Reserves and surplus amounted to Rs 20000. Closing
stock is Rs 5000 in excess of opening stock.