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From the following particulars extracted from the books of Ashok & Co. Ltd., compute Current ratio and StockTurnover Ratio: 1 - 1 2002 31 -
From the following particulars extracted from the books of Ashok & Co. Ltd., compute Current ratio and StockTurnover Ratio:
1 - 1 2002 | 31 - 12 - 2002 | |
Rs | Rs | |
bills receivable | 30,000 | 60,000 |
bills payable | 60,000 | 30,000 |
sundry debtors | 1,20,000 | 1,05,000 |
sundry creditors | 75,000 | 1,05,000 |
stock - in - trade | 96,000 | 1,44,000 |
Additional information:
1) On 31122002, there were assets: Building Rs. 2,00,000, Cash Rs. 1,20,000 and Cash at Bank Rs. 96,000.
2) Cash purchases Rs. 1,38,000 and Purchases Returns were Rs. 18,000.
3) Cash sales Rs. 1,50,000 and Sales returns were Rs. 6,000.
4) Rate of gross profit 25% on sales and actual gross profit was Rs. 1,50,000.
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