Question : Which of the following transactions will not change in the current ratio?
Option 1: Redemption of Debentures.
Option 2: Purchase of goods for Rs.20,000 against cheque.
Option 3: Purchase of Loose Tools for Rs. 10,000 against cheque.
Option 4: Bill Receivable of Rs.5,000 endorsed to a Creditor is dishonoured.
Correct Answer: Purchase of goods for Rs.20,000 against cheque.
Solution : Answer - Purchase of goods for Rs.20,000 against cheque. Purchased Goods against cheque.
if we assume
$\begin{aligned} & \text { C. } A=2,00,000 \\ & \text { C.liaB }=1,00,000 \\ & \text { C. Ratio }=\frac{2,00,000}{1,00,000}+1,00,000(Goods \text {) - 1,00,000 (Cheque)} \\ & =No \text { Change. } \\ & \end{aligned}$ Hence, the correct option is 2.
Question : Which of the following transactions will decrease the current ratio?
Option 1: Sale of goods for Rs.2,00,000 (Cost Rs. 1,50,000).
Option 2: Sale of goods for Rs.2,00,000 (Cost Rs.2,20,000)
Option 3: Sale of furniture for Rs.40,000 (Book Value Rs.50,000
Option 4: Bill Receivable endorsed to a Creditor
Question : Purchase Rs.80,000; Opening Inventory Rs. 10,000 and Closing Inventory Rs.30,000. which of the following transactions will decrease ----
Option 1: Goods purchased for Rs.20,000
Option 2: Purchase returns Rs.5,000
Option 3: Goods costing Rs. 10,000 withdrawn for personal use
Option 4: Goods costing Rs.5,000 distributed as free sample
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