Balance Sheet as at March 31, 2017  
Particulars  ₹ 
I. Equity and Liabilities:  
1.Shareholder’s funds  
a) Share capital  10,00,000 
b) Reserves and surplus  7,00,000 
c) Money received against share warrants  2,00,000 
2. NonCurrent Liabilities  
Long term borrowings  12,00,000 
3. Current liabilities  
a) Trade payables  5,00,000 
Total  36,00,000 
II. Assets  
1. Noncurrent Assets  
Fixed assets  
Tangible assets  18,00,000 
2. Current Assets  

4,00,000 

9,00,000 

5,00,000 
Total  36,00,000 
Particulars  201516  20162017 
₹  ₹  
Trade receivables on Apr. 01  4,00,000  5,00,000 
Trade receivables on Mar. 31  5,60,000  
Stock in trade on Mar. 31  6,00,000  9,00,000 
Revenue from operations (at gross profit of 25%)  3,00,000  24,00,000 
Current ratio = 4:1
Liquid ratio = 1:1
Current liabilities = ₹75,000
Then liquid assets = ₹75,000
Current assets = ₹75,000 x 4 = ₹3,00,000
Inventory = Current assets – Liquid assets
= ₹3,00,000 – ₹75,000 = ₹2,25,000
Current ratio = 4.5:1
Quick ratio = 3:1
Let current liabilities = X
Then current assets = 4.5X
Current liabilities = 3X
Inventory = 4.5X – 3X = 1.5X
1.5X = ₹36,000
X = Current liabilities = ₹24,000
Current assets = ₹24,000 x 4.5 = ₹1,08,000
Particulars  ₹ 
I. Equity and Liabilities:  
1.Shareholder’s funds  
a) Share capital  24,00,000 
b) Reserves and surplus  6,00,000 
2. NonCurrent Liabilities  
Long term borrowings  9,00,000 
3. Current liabilities  
a) Shortterm borrowings  6,00,000 
b) Trade payables  23,40,000 
c) Shortterm provisions  60,000 
Total  69,00,000 
II. Assets  
1. Noncurrent Assets  
Fixed assets  
Tangible assets  45,00,000 
2. Current Assets  

12,00,000 

9,00,000 

2,28,000 

72,000 
Total  69,00,000 
Ratio analysis refers to a technique of analysing the financial statements by computing various types of ratios. In other words, it is a process of determining and interpreting relationship between the items of financial statements to provide a meaningful result of the performance and financial position of a business.
Particulars  ₹ 
I. Equity and Liabilities:  
1.Shareholder’s funds  
a) Share capital  7,90,000 
b) Reserves and surplus  35,000 
2. Current Liabilities  
Trade Payables  72,000 
Total  8,97,000 
II. Assets  
1. Noncurrent Assets  
Fixed assets  
Tangible assets  7,53,000 
2. Current Assets  

55,800 

28,800 

59,400 
Total  8,97,000 
Yes, it is true that the liquidity of a business firm is measured by its ability to pay its long term obligations as they become due. Here the long term obligation means payments of principal amount on the due date and payment of interest on the regular basis. For measuring the long term solvency of any business we calculate the following ratios:
Accounting ratios are classified as follows:
To meet its commitments, business needs liquid funds. The ability of the business to pay the amount due to stakeholders as and when it is due is known as liquidity, and the ratios calculated to measure it are known as ‘Liquidity Ratios’. These ratios are calculated to measure the shortterm solvency of the business, i.e. the firm’s ability to meet its current obligations. Liquidity ratios include current ratio and liquid ratio.
Current Ratio: It indicates the amount of current assets available for repayment of current liabilities. Higher the ratio, the greater is the short term solvency of a firm and vice a versa. However, a very high ratio or very low ratio is a matter of concern. If the ratio is very high it means the current assets are lying idle. Very low ratio means the short term solvency of the firm is not good. Thus, the ideal current ratio of a company is 2:1 i.e. to repay current liabilities; there should be twice current assets.
Liquid ratio: This ratio establishes a relationship between liquid assets and current liabilities. Liquid ratio is a measure of the instant debt paying capacity of the business enterprise. It is a measure of the extent to which liquid resources are immediately available to meet current obligations. A quick ratio of 1:1 is considered good/favourable for a company. For the purpose of calculating this ratio, inventory and prepaid expenses are not taken into account as these may not be converted into cash in a very short period.
Math is a subject that analyses the critical and analytical thinking of a student and tests numerical questions. So, the best way to prepare for Math is by studying the NCERT solutions. Make a timetable, jot down the important formulas, and theorems, make time for revision and give as much time as you can give to practicing questions. Solve a maximum number of questions and time your efforts. Extramarks  The Learning App has several sample papers along with NCERT 12 solutions that can be used for practicing for class 12 Math exam.
Class 12 exams seem like a major feat, but they are actually quite simple and really just a milestone that every student cross in his/her academic life. There is nothing to fear as you can easily prepare for the exams with the help of NCERT solutions for class 12 that are given on the Extramarks website or Extramarks – The Learning App
The CBSE guide for class 12 study material NCERT contains all syllabus prescribed to students of class 12. Look for NCERT solutions on the Extramarks website in the footer section and you will find all solutions there.
Yes, Extramarks provides all NCERT class 12 solutions for all subjects for class 12. Extramarks  The Learning App also has solved and unsolved sample papers that you can use to practice for your exams. You can also find the previous year`s solved board question paper on the app.
To score good marks in class 12 CBSE board exams, you must follow these tips:
1. Make a timetable to study well. Organize and prioritize the topics you want to study and haven`t yet had the time to open. Start studying with the most crucial topics.
2. Follow your timetable religiously. Save time for relaxing activities like meditation, swimming or sleeping.
3. Make brief notes containing important answers, character sketches, theorems, formulae, etc. Make clear notes so you can study them before the exam.
4. Learn from class 12 NCERT solutions given on Extramarks website.
5. Be confident that you can crack these exams and take time off to relax.
6. Revise thoroughly before the exam.
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