Q. 16 Solution of Accounting Ratios Chapter TS Grewal Book Class 12 2021-22
Are you looking for the solution of Question number 16 of the Accounting Ratios of TS Grewal Book 2021-22 Edition for the 2021-22 session?
Question number 16 of the Accounting Ratios chapter is a practical one.
Solution of Question Number 16 of Accounting Ratios Chapter of TS Grewal Book 2021-22 Class 12
Here is the solution to it.
Case – I:- Statement Showing Effect on Current Ratio of 1: 1
| Case | Effect | Reason |
| a) | No Change | Both current Assets and Current Liabilities will decrease by same amount. |
| b) | No Change | Both current Assets and Current Liabilities will increase by same amount. |
| c) | No Change | A current Assets is converted into another current assets. |
| d) | No Change | Both current Assets and Current Liabilities will decrease by same amount. |
| e) | No Change | Both current Assets and Current Liabilities will decrease by same amount. |
| f) | No Change | Both current Assets and Current Liabilities will decrease by same amount. |
| g) | No Change | Both current Assets and Current Liabilities will increase by same amount. |
Case – II:- When current ratio is 0.8 : 1
| Case | Effect | Reason |
| a) | Reduce | Both current Assets and Current Liabilities will decrease by same amount. |
| b) | Improve | Both current Assets and Current Liabilities will increase by same amount. |
| c) | No Change | A current Assets is converted into another current assets. |
| d) | Reduce | Both current Assets and Current Liabilities will decrease by same amount. |
| e) | Reduce | Both current Assets and Current Liabilities will decrease by same amount. |
| f) | Reduce | Both current Assets and Current Liabilities will decrease by same amount. |
| g) | Improve | Both current Assets and Current Liabilities will increase by same amount. |
