Using the information on ratios and the format given below, compute and provide the value of balance sheet items for Wisdom Ltd. which has sales of ₹36 lakh for the year 2015-16: Sales : Total assets : 3 Sales : Fixed as

Answer 2(a) Balance Sheet of Wisdom Ltd. As on 31.03.2016 Liabilities Amount (₹ in lacs) Net Worth 4.80 Long Term Debts 4.80 Current Liabilities 2.40 Total 12.00 Assets Amount (₹ in lacs) Fixed Assets 7.20 Inventories 1.80 Trade Receivables 2.40 Liquid Assets 0.60 Total 12.00 Working Note The sales of Wisdom Ltd. is ₹36.00 lacs. Particulars Values Calculations Desired Value (₹ in lacs) Sales: Total Assets 3 Total Assets = 36/3 12.00 Sales: Fixed Assets 5 Fixed Assets = 36/5 7.20 Sales: Current Assets 7.5 Current Assets = 36/7.50 4.80 Sales: Inventories 20 Inventories = 36/20 1.80 Sales: Debtors 15 Debtors = 36/15 2.40 Current Ratio 2 Current Liabilities = 4.8/2 2.40 Total Assets: Net Worth 2.5 Net Worth = 12/2.50 4.80 Debt: Equity 1 Debt = 4.80*1 4.80 Liquid Assets = Current Assets - Inventories - Debtors = 4.80 - 1.80 - 2.40 = 0.60 0.60