Class 12th Accountancy 2017 Set3 Delhi Board Paper Solution
The Quick ratio of a company is 0.8 : 1. State with reason whether the following transactions will increase, decrease or not change the quick ratio :
(1) Purchase of loose tools â¹ 2,000.
(2) Insurance premium paid in advance â¹ 500.
(3) Sale of goods on credit â¹ 3,000.
(4) Honoured a bills payable â¹ 5,000 on maturity.
Quick ration is also known as Acid test ratio or Liquidity ratio and the formula is as below:
Or
1) Purchase of loose tools â¹ 2,000. (Cash outflow)
Imapct : Decrease
Reason: Quick assets are decreasing
2) Insurance premium paid in advance â¹ 500. (Cash outflow)
Imapct : Decrease
Reason: Quick assets are decreasing
3) Sale of goods on credit â¹ 3,000. (Debtors increasing)
Imapct : Increase
Reason: Quick assets are increasing.
4) Honoured a bills payable â¹ 5,000 on maturity. (cash outlflow)
Imapct : Decrease
Reason: Quick assets are decreasing and current liability is also decreasing.
Popular Questions of Class 12th accountancy
- Q:-
What is Capital Fund? How is it calculated?
- Q:-
What is sacrificing ratio? Why is it calculated?
- Q:-
If a fixed amount is withdrawn on the first day of every quarter, for what period the interest on total amount withdrawn will be calculated?
- Q:-
Why there is need for the revaluation of assets and liabilities on the admission of a partner?
- Q:-
What is subscription? How is it calculated?
- Q:-
List the items which may be debited or credited in capital accounts of the partners when:
(i) Capitals are fixed.
(ii) Capital are fluctuating. - Q:-
Why is Profit and Loss Adjustment Account prepared? Explain.
- Q:-
If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
- Q:-
Why it is considered desirable to make the partnership agreement in writing.
- Q:-
On what occasions sacrificing ratio is used?
Recently Viewed Questions of Class 12th accountancy
- Q:-
Reproduce the format of Realisation Account.
- Q:-
If some goodwill already exists in the books and the new partner brings in his share of goodwill in cash, how will you deal with existing amount of goodwill?
- Q:-
What are the features of Receipt and Payment Account?
- Q:-
Why is Profit and Loss Adjustment Account prepared? Explain.
- Q:-
Write the various matters that need adjustments at the time of retirement of partner/partners.
- Q:-
State the difference between dissolution of partnership and dissolution of partnership firm.
- Q:-
What is Capital Fund? How is it calculated?
- Q:-
Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?
- Q:-
State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities - Q:-
In the absence of Partnership deed, specify the rules relating to the following :
(i) Sharing of profits and losses.
(ii) Interest on partner’s capital.
(iii) Interest on Partner’s drawings.
(iv) Interest on Partner’s loan
(v) Salary to a partner.