[DK Goel] Q. 137,138,139,140 Accounting Ratios Solutions Class 12 CBSE (2026-27)

the solutions of Question number 137, 138, 139, 140 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2026-27)

Q. 137. The quick ratio of a company is 1 : 1. State giving reasons, which of the following would improve, reduce or not change the ratio?

(i) Purchase of machinery for cash

(ii) Purchase of goods on credit

(iii) Sale of furniture at cost

(iv) Sale of goods at a profit

(v) Redemption of Debentures Redeemable in the current year.

(vi) Cash received from Debtors.

[Ans. (i) Reduce; (ii) Reduce, (iii) Improve; (iv) Improve; (v) No Change (vi) No Change]

Note:- In Case V, Both Current Liabilities and Liquid Assets will be reduced by the same amount because redeemable debentures are included in current liabilities.

Solution:-

Q. 138. Current Assets ₹ 5,00,000; Working Capital ₹ 3,00,000. Calculate Current Ratio.

[Ans. 2.5 : 1.]

Solution:-

Hint: Current Assets – Working Capital = Current Liabilities.

Q. 139. Current Liabilities ₹ 20,000; Working Capital ₹ 80,000. Calculate Current Ratio.

[Ans. 5 : 1.]

Solution:-

Q. 140. Current Ratio 3 : 1; Current Assets ₹ 60,000. Calculate Current Liabilities.

[Ans. ₹ 20,000.]

Solution:-