Q. 16 Solution of Accounting Ratios Chapter TS Grewal Book Class 12 2021-22

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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

CaseEffectReason
a)No ChangeBoth current Assets and Current Liabilities will decrease by same amount.
b)No ChangeBoth current Assets and Current Liabilities will increase by same amount.
c)No ChangeA current Assets is converted into another current assets.
d)No ChangeBoth current Assets and Current Liabilities will decrease by same amount.
e)No ChangeBoth current Assets and Current Liabilities will decrease by same amount.
f)No ChangeBoth current Assets and Current Liabilities will decrease by same amount.
g)No ChangeBoth current Assets and Current Liabilities will increase by same amount.

Case – II:- When current ratio is 0.8 : 1

CaseEffectReason
a)ReduceBoth current Assets and Current Liabilities will decrease by same amount.
b)ImproveBoth current Assets and Current Liabilities will increase by same amount.
c)No ChangeA current Assets is converted into another current assets.
d)ReduceBoth current Assets and Current Liabilities will decrease by same amount.
e)ReduceBoth current Assets and Current Liabilities will decrease by same amount.
f)ReduceBoth current Assets and Current Liabilities will decrease by same amount.
g)ImproveBoth current Assets and Current Liabilities will increase by same amount.
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Anurag Pathak

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