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Quick Ratio of… (Class 12 Accountancy SQP 2025-26, Q33a)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 4 marks · Long answer

CBSE Class 12 Accountancy sample paper 2025-26: question 33(a)

From the official CBSE sample question paper for 2025-26, section B-I, question 33(a), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q33(a) · 4 marks · Long answerAccounting Ratios

Quick Ratio of Roxy Traders is 0.8 : 1. State with reasons whether the following transactions will increase , decrease or will have no change on the ratio
a) Goods purchased on Credit
b) Outstanding Expenses paid
c) Sale of Fixed Assets a 20% loss
d) Issue of Debentures at Premium to Vendors

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

List what counts as quick assets: current assets minus inventory and prepaid expenses.

Hint 2

When a ratio is below 1, an equal fall in both terms lowers it.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (a) Goods purchased on credit: inventory is not a quick asset, so quick assets stay the same while current liabilities (trade payables) rise. The ratio decreases.

    1 mark

  2. (b) Outstanding expenses paid: quick assets (cash) and current liabilities fall by the same amount. As the ratio is below 1 (0.8 : 1), it decreases (for example 80/100 becomes 70/90 = 0.78).

    1 mark

  3. (c) Sale of a fixed asset, even at a loss, brings in cash, so quick assets rise with no change in current liabilities. The ratio increases.

    1 mark

  4. (d) Debentures issued to vendors at a premium for assets bought: no quick asset or current liability is affected. No change.

    1 mark

Answer: (a) Decrease (b) Decrease (c) Increase (d) No change

Where the marks are

  • Each transaction with its reason (1 mark each)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.