ABM / Module D sum series by Krishna Sah

S1: A company has net worth of Rs 5 lac , term liabilities are Rs 10 lac. Fixed Assets
worth Rs 16 lac and current assets are Rs 25 lac. There is no intangible assets or the
non current assets. Calculate it's net working capital.
1) 1 lac
2) 2 lac
3) 3 lac
4) 4 lac
Ans : 1)
S2: In balance sheet amount of total assets is Rs 10 lac , current liabilities Rs 5 lac and
capital and reserves Rs 2 lac. What is the debt-equity ratio ?
1) 1:1
2)1.5:1
3)1.75:1
4) 2:1
Ans : 2)
S3: Capital is Rs 180, Reserves Rs 20, term loan Rs 300, Bank cash credit Rs 200,
trade creditors Rs 50, provisions Rs 50/-,net fixed assets Rs 400,inventories Rs 150,
cash Rs 50, Receivables Rs 150, goodwill Rs 50. What is current ratio ?
1) 1
2) 1:1.17
3)1.17:1
4) 2
Ans: 3)
S4:The balance sheet of a firm has shown total asset of Rs 20 lacs . The long term uses
are Rs 11 lacs and current ratio 1.5:1. What is the amount of current liabilities ?
1) Rs 11 lacs
2) Rs 9 lacs
3) Rs 7 lacs
4) Rs 6 lacs
Ans : 4)
S5:
Liabilitiess
Capital =180
Reserve =20
Term loan = 300
Bank C/C=200
Trade creditors=50
Provision=50
Total liabilities = 800
Assets
Net fixed Assets =400
Inventories=150
Cash =50
Receivables= 150

Good will=50
Total assets =800
1) Net worth= ?
2) Tangible net worth = ?
3) Net working capital = ?
4) Quick ratio = ?
5) Current ratio =?
6) Outside liability =?
Ans : 200 , 150 , 50 , 0.66:1 , 1.17:1 , 600
S6: The amount of instalment of a term loan is fixed at Rs 10000/- per month and the
monthly average interest on the account is Rs 5000/-. If the amount of depreciation is Rs
30000/- p.a. and profit after tax Rs 270000/-. What is DSCR ?
1)1.5
2)1.75
3)2
4)2.5
Ans : 3)
S7: The balance sheet of a firm has shown total asset of Rs 20 lacs . The long term uses
are Rs 11 lacs and current ratio 1.5:1. What is the amount of current liabilities ?
1) Rs 11 lacs
2) Rs 9 lacs
3) Rs 7 lacs
4) Rs 6 lacs
Ans : 4)
S8: Sanctioned limit = Rs 3 lacs , Stocks = Rs 6 lacs, creditors = Rs 2 lacs , Mortgage of
property = 50 lacs , margin = 30%. Calculate the DP.
1) 3 lacs
2) 5 lacs
3) 2 lacs
4) 4 lacs
Ans : 1)
S9:Suppose CR is 4:1. NWC is Rs 30000/- what is the amount of CA ?
1) Rs 20000/2) Rs 10000/3) Rs 40000/4) Rs 60000/Ans : 3)
S10: Total liabilities of a firm is Rs 100 lac and current Ratio is 1.5:1. If fixed assets and
other non current assets are to the tune of Rs 70 lac and Debt equity ratio being 3:1.
What would be the long term liabilities ?
1) Rs 60 lac
2) Rs 50 lac
3) Rs 40 lac

4) Rs 100 lac
Ans : 1)
S11: Cash = Rs 50000/Debtors = Rs 100000/Inventories = Rs 150000/Current liabilities = 100000/Total current assets = 300000/Quick Ratio = ?
Ans : 1.5:1
S12: LIABILITIES
Equity capital 200
Perference capital 100
Term loan 600
Bank CC( Hyp) 400
Sundry creditors 100
ASSETS
Net fixed assets 800
Inventory 300
Receivables 150
Investment in Gov Sec 50
Preliminary Expenses 100
Total outside liabilities/ Total tangible net worth
DER = ?
Tangible net worth = ?
Current ratio= ?
Ans : 5.5, 2:1 , 200 , 1:1
S13: The current ratio of M/S Krishna & Co. was 2:1 and current assets of Rs 20 lac.
Stocks worth Rs 5 lac are damaged and there is no insurance. What is the new current
ratio, if the total assets are Rs 40 lac ?
1) 1.75
2) 1.5
3) 1.33
4) 1.25
Ans : 2)
S14: A firm revalues its land and building from Rs 40 lac to Rs 100 lac. If the current
asset before this revaluation was 1.33:1 with current liabilities of Rs 100 lac. What will be
new current ratio ?
1) 1.17
2) 1.25
3) 1.33
4) 1.50
Ans : 3)
S15: The DER is 3:1 , the amount of total assets Rs 20 lac , current ratio is 1.5:1 and
owned funds Rs 3 lac. What is the amount of current asset ?

1) 3 lac
2) 5 lac
3) 12 lac
4) 15 lac
Ans : 3)
S16: A firm has the following financial figures from its balance sheet :
Capital Rs 12 lac
Reserve Rs 4 lac
Unsecured loan Rs 5 lac
Current assets Rs 16 lac
Pre operative expenses Rs 2 lac
Its net worth = ?
Ans: 14 lac
I request you to get the depth of assets & liabilities by reading the module D
carefully. You'll be able to solve the sums thereafter. Even if you feel problem, feel free to
ask me.
My fb ID: krishna.sah@facebook.com