Accountancy Tes...

In case of the issue of debentures as collateral security for a loan from the bank which account will be debited :

Match List - I with List - II.

Choose the correct answer from the options given below :

Match List - I with List - II.

Choose the correct answer from the options given below :

Debentures issued for consideration other than cash includes, debentures:

(A) Issued to bank as additional security

(B) Issued to vendor

(C) Issued to Public

(D) Issued to creditor

(E) Issued for cash

Choose the correct answer from the options given below :

The working capital of IAN Ltd. is ₹ 2,00,000 and its current assets are ₹ 6,00,000. What is its current ratio?

Working capital is the excess of current assets over current liabilities.

Purchase of goods ₹ 40,000 for cash will increase the operating ratio.

A ratio reflects quantitative as well as qualitative aspects of results.

Current ratio of Vidur Pvt. Ltd. is 3:2. Accountant wants to maintain it at 2:1. Following options are available

(i) He can repay bills payable.

(ii) He can take short-term loan.

(iii) He can purchase goods on credit.

Choose the correct option.

What will be the effect on current ratio if a bills payable is discharged on maturity?