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Quick Ratio of… (Class 12 Accountancy SQP 2026-27, Q33A)

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AccountancyCBSE Class 12 · Sample paper, session 2026-27 · 4 marks · Long answer

CBSE Class 12 Accountancy sample paper 2026-27: question 33(A)

From the official CBSE sample question paper for 2026-27, 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 Alpha Traders is 1.2 : 1. Given that their operating cycle is of 8 months, state with reasons whether the following transactions will increase, decrease, or not affect the Quick Ratio:
I. Bills Receivable ₹40,000 were dishonoured and treated as bad debts.
II. Stock worth ₹25,000 was destroyed by fire; insurance company admitted claim of ₹18,000 receivable within 6 months.
III. Furniture having book value ₹60,000 was sold for ₹52,000; sale proceeds to be received in 11th month from the date of sale.
IV. 12% Debentures of ₹2,00,000 were issued at a premium of 10% to a supplier of machinery costing ₹ 3,00,000 and balance was settled through cheque.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

A ratio above 1 rises when quick assets rise and liabilities stay the same.

Hint 2

An asset is current if it will be realised within the operating cycle or 12 months.

Hint 3

Only the cheque part of the machinery payment touches quick assets.

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. I. Decrease. Bills receivable (a quick asset) are written off; quick liabilities do not change.

    1 mark

  2. II. Increase. Stock (not a quick asset) is replaced by an insurance claim receivable within 6 months, a new quick asset.

    1 mark

  3. III. Increase. The ₹ 52,000 receivable is due within 12 months, so it is a current (quick) asset; furniture was not a current asset.

    1 mark

  4. IV. Decrease. Debentures of ₹ 2,20,000 cover part of the ₹ 3,00,000 machine; the ₹ 80,000 balance paid by cheque reduces quick assets with no change in current liabilities.

    1 mark

Answer: I decrease; II increase; III increase; IV decrease

Where the marks are

  • 1 mark for each transaction with reason (4 marks)

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 2026-27: 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.