ISC Class 12 Accountancy Board Exam Question Paper 2017 with Solutions

ISC Class 12 Accounts Board Exam Question Paper with Solutions

PART I (30 Marks)

Question 1 [10 × 2]
Answer briefly each of the following questions:

(i) What is the accounting treatment of forfeiture of shares which were originally issued at a premium but subsequently forfeited for non payment of calls when:
(a) The allotment money including premium has been paid by the shareholder
(b) The allotment money including premium has not been paid by the shareholder. [2 Marks]

Answer:
(a) When the allotment money including premium has been paid, the Securities Premium Reserve account is not debited upon forfeiture, because the premium has already been received. Share Capital Account is debited with the called-up value of shares, and Forfeited Shares Account is credited with the amount already received.
(b) When the allotment money including premium has not been paid, the Securities Premium Reserve account is debited along with Share Capital Account (since the premium due remains unpaid), and Forfeited Shares Account is credited with the amount actually received excluding the premium.

Teacher's Note:
a) Students must remember that Securities Premium Reserve is cancelled only if it has been due and not received.
b) A common mistake is to debit Securities Premium Reserve even when it has already been collected.

(ii) How will you deal with current year's 'Proposed Dividend' and previous year's 'Unclaimed Dividend' at the time of preparation of final accounts of a joint stock company? [2 Marks]

Answer:
Current year's Proposed Dividend is shown as a contingent liability in the Notes to Accounts under Contingent Liabilities and Commitments, as it is no longer recognized as a liability on the balance sheet date as per AS-4 (Revised). Previous year's Unclaimed Dividend is shown under Current Liabilities as Other Current Liabilities.

Teacher's Note:
a) Under revised accounting standards, proposed dividend is not provided for in the books of accounts of the current year.
b) Unclaimed dividend represents amounts declared as dividends but remaining unpaid, hence treated as a current liability.

(iii) How will you deal with 'Purchased Goodwill' at the time of preparation of cash flow statement from two consecutive years' balance sheet without any adjustments? [2 Marks]

Answer:
If the value of Purchased Goodwill increases from the previous year to the current year, the difference is treated as purchase of goodwill and shown as an outflow of cash under Investing Activities. If its value decreases, the difference is treated as amortization or writing off of goodwill and added back to net profit before tax and extraordinary items under Operating Activities.

Teacher's Note:
a) An increase in goodwill indicates cash outflow in investing activities.
b) A decrease represents a non-cash operating expense added back to operating profit.

(iv) Give two differences between debtors turnover ratio and creditors turnover ratio. [2 Marks]

Answer:

Teacher's Note:
a) Debtors turnover ratio measures credit collection efficiency.
b) Creditors turnover ratio measures credit payment policy.

(v) How would you adjust the capital accounts of the partners, when the share of profit of a partner is guaranteed by:
(a) the firm
(b) another partner. [2 Marks]

Answer:
(a) When guaranteed by the firm, any deficiency in the guaranteed share of profit is borne by all the remaining partners in their agreed profit-sharing ratio through the Profit and Loss Appropriation Account.
(b) When guaranteed by another partner, the deficiency is debited solely to the capital or current account of the guaranteeing partner and credited to the guaranteed partner's account.

Teacher's Note:
a) Firm guarantee affects all remaining partners collectively in their mutual ratio.
b) Individual guarantee impacts only the specific partner who provided the guarantee.

(vi) Define an intangible asset as per AS-26, issued by The Institute of Chartered Accountants of India. [2 Marks]

Answer:
As per AS-26, an intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.

Teacher's Note:
a) Key elements are identifiability, lack of physical substance, and non-monetary nature.
b) Goodwill purchased is also covered under AS-26.

(vii) A firm maintains three ledgers:
(a) General Ledger
(b) Debtors Ledger
(c) Creditors Ledger
At the end of the year, a trial balance is extracted from the three ledgers taken together. Explain how you will extract a trial balance if the sectional balancing system is incorporated. [2 Marks]

Answer:
Under the sectional balancing system, each ledger is made self-balancing by opening total accounts (such as Total Debtors Account in the General Ledger and General Ledger Adjustment Account in the Debtors Ledger). A trial balance is then extracted by taking all balances from the General Ledger along with the closing balances of control accounts from the subsidiary ledgers.

Teacher's Note:
a) Sectional balancing provides internal check for each ledger independently.
b) Control accounts act as the connecting link between the general ledger and subsidiary ledgers.

(viii) What is the meaning of underwriting of shares in the context of a joint venture business? [2 Marks]

Answer:
Underwriting of shares in a joint venture context means an agreement entered into by co-ventures to guarantee the subscription of a specified number of shares of a company by the public, agreeing to take up any unsubscribed shares themselves in exchange for an agreed commission or consideration.

Teacher's Note:
a) Underwriting ensures minimum subscription for the issuing company.
b) Co-ventures share the risk and the commission/profit.

(ix) When a company purchases the business of another company, what are the two possibilities that may arise in the books of the purchasing company, if the value of net assets is not equal to the purchase price? [2 Marks]

Answer:
1. If the purchase price is more than the value of net assets acquired, the difference is debited to Goodwill Account.
2. If the purchase price is less than the value of net assets acquired, the difference is credited to Capital Reserve Account.

Teacher's Note:
a) Excess of purchase price over net assets represents payment for goodwill.
b) Excess of net assets over purchase price is a capital gain credited to Capital Reserve.

(x) How would you value the goodwill of a partnership firm on the basis of:
(a) capitalization of average profit method?
(b) capitalization of super profit method? [2 Marks]

Answer:
(a) Capitalization of Average Profit: Goodwill = Capitalized Value of Average Profit - Actual Capital Employed, where Capitalized Value = (Average Profit × 100) / Normal Rate of Return.
(b) Capitalization of Super Profit: Goodwill = (Super Profit × 100) / Normal Rate of Return, where Super Profit = Average Profit - Normal Profit.

Teacher's Note:
a) Both methods result in the same valuation of goodwill if correctly applied.
b) Students must clearly state formulas with components like capital employed and normal rate of return.

Question 2 [10 Marks]
Burton and Sons, a partnership firm is about to admit a partner and so decides to value goodwill in the books. The partners are considering three different methods of valuation as follows:
(a) On the basis of two years' purchase of the average profits of the last five consecutive years. These were: 2006 - Rs. 56,000; 2007 - Rs. 48,000; 2008 - Rs. 46,000; 2009 - Rs. 58,000 and 2010 - Rs. 66,000.
(b) On the basis of three years' purchase of total super profits of the last five years. For this purpose, the normal profit is to be taken as Rs. 40,000 per annum.
(c) On the basis of capitalizing the average super profit. For this purpose, the following information is provided:
(i) Adjusted forecast maintainable profits Rs. 60,000.
(ii) Normal rate of return 20%.
(iii) Capital employed Rs. 2,00,000
(iv) Capitalization rate 25%.
You are required to calculate the value of goodwill on the basis of each of the three methods (a) to (c) above.

Answer:
Calculation of Goodwill:
Method (a): Average Profit Method
Total Profit for 5 years = 56,000 + 48,000 + 46,000 + 58,000 + 66,000 = Rs. 2,74,000
Average Profit = 2,74,000 / 5 = Rs. 54,800
Goodwill = Average Profit × Number of years' purchase = 54,800 × 2 = Rs. 1,09,600.

Method (b): Super Profit Method (3 years' purchase of total super profits of 5 years)
Total Average Profit for 5 years = Rs. 54,800
Normal Profit per annum = Rs. 40,000
Total Normal Profit for 5 years = 40,000 × 5 = Rs. 2,00,000
Total Profit for 5 years = Rs. 2,74,000
Total Super Profit = Total Actual Profit - Total Normal Profit = 2,74,000 - 2,00,000 = Rs. 74,000
Goodwill = Total Super Profit × Number of years' purchase = 74,000 × 3 = Rs. 2,22,000.
(Alternatively, if super profit is taken per annum: Super Profit = 54,800 - 40,000 = Rs. 14,800; Goodwill = 14,800 × 3 = Rs. 44,400. As per standard ICSE interpretation for total super profits of 5 years, total super profit is Rs. 74,000 × 3 = Rs. 2,22,000).

Method (c): Capitalization of Average Super Profit
Capital Employed = Rs. 2,00,000
Normal Rate of Return = 20%
Normal Profit = 2,00,000 × 20% = Rs. 40,000
Adjusted Maintainable Profit = Rs. 60,000
Super Profit = Maintainable Profit - Normal Profit = 60,000 - 40,000 = Rs. 20,000
Goodwill = (Super Profit × 100) / Normal Rate of Return = (20,000 × 100) / 20 = Rs. 1,00,000.
(Note: Capitalization rate given as 25% is often an alternate rate or distractor, but normal rate of return 20% applies to super profit capitalization).

Teacher's Note:
a) Ensure all steps of averaging and super profit calculations are clearly shown.
b) Pay careful attention to whether super profit is calculated annually or aggregatively over the given period.

PART II (70 Marks)

Question 3 [14 Marks]
The following information is available from the books of Robinson and Company Limited:
Debit balance as on 1.7.97, Rs. 87,200 in Debtors account and Credit balance as on 1.7.97, Rs. 600 in Debtors account.
Transactions during the six months ended 31.12.97
Total sales were Rs. 94,000 including cash sales of Rs. 4,000.
Debtors whose balance was in credit were paid off Rs. 600.
Payments received by cheque from debtors Rs. 60,000.
Payments received by cash from debtors Rs. 48,000.
Payment received by bills receivable Rs. 26,000.
Bills receivable received from debtors were dishonoured for Rs. 6,000 and noting charges of Rs. 60 were paid.
Bills amounting to Rs. 10,000 were discounted with the bank for Rs. 9,900.
Cheques received from customers were dishonoured for Rs. 800.
Out of bills receivable received and included in Rs. 26,000 above, bills of Rs. 5,000 were endorsed to suppliers.
Bad debts written off during the period were Rs. 1,000.
Discount allowed for prompt payment were Rs. 700 and bad debts written off in 1995 and now recovered from debtors amounted to Rs. 900.
Interest debited for delay in payments was Rs. 1,250.
On 31.12.97, provision for doubtful debts was created for Rs. 2,100 and provision for discount on debtors for Rs. 500.
Hugo and Company Limited appeared in Debtors Ledger and also in Creditors Ledger.
The balance in Creditors Ledger was Rs. 900 and the same was transferred to Debtors Ledger.
Goods of Rs. 2,760 were rejected by customers.
From the given information, prepare a Total Debtors Account in the General Ledger.

Answer:

Dr. Total Debtors Account in the General Ledger Cr.

Working Notes:
1. Credit Sales = Total Sales (Rs. 94,000) - Cash Sales (Rs. 4,000) = Rs. 90,000.
2. Bad debts recovered and provisions are internal adjustments and do not appear in the Total Debtors Account. Discounted bills, endorsed bills and opening credit balances of debtors are handled as per standard sectional balancing rules.

Teacher's Note:
a) Opening credit balance of debtors is recorded on the debit side as opening balance, and opening debit balance is recorded on the debit side as opening balance.
b) Provision for doubtful debts and bad debts recovery are excluded from Total Debtors Account.

Question 4 [14 Marks]
Andrew and Bill entered into a joint venture for underwriting the subscription at par of the entire share capital of Jacob and Company Limited consisting of 1,00,000 equity shares of Rs. 10 each and to pay all expenses up to allotment. The profits were to be shared by them in the ratio of 3:2 respectively.
The consideration in return for this agreement was the allotment of 12,000 other shares of Rs. 10 each to be issued to them as fully paid.
Andrew provided the funds amounting to Rs. 32,500 for various expenses and Bill contributed Rs. 27,500 on account of office expenses.
The prospectus was issued and application fell short of the issue by 15,000 shares. Andrew took these over on joint account and paid for the same in full. The ventures received 12,000 fully paid shares as underwriting commission.
They sold their entire share holding at Rs. 12.50 less 50 paise brokerage per share. The net proceeds were received by Andrew for 15,000 shares and Bill for 12,000 shares.
You are required to show in the books of Andrew and Bill, the joint venture accounts as well as their personal accounts in their respective books.

Answer:

Dr. Joint Venture Account Cr.

Dr. Joint Venture with Bill Account (in the books of Andrew) Cr.

Working Notes:
1. Net selling price per share = Rs. 12.50 - Rs. 0.50 = Rs. 12.00.
2. Total shares sold = 15,000 (taken over) + 12,000 (commission shares) = 27,000 shares.
3. Sale proceeds = 27,000 × Rs. 12 = Rs. 3,24,000 (Andrew received 15,000 × 12 = Rs. 1,80,000; Bill received 12,000 × 12 = Rs. 1,44,000).

Teacher's Note:
a) Commission shares received as underwriting consideration are valued at cost (Rs. 10) or recorded as zero cost and their full sale proceeds credited to joint venture.
b) Personal accounts of co-ventures reflect final settlement based on contributions and receipts.

Question 5 [14 Marks]
Bird and Company Limited issued 10,000 shares of Rs. 10 each payable as follows:
Application - Rs. 4 per share on 1.1.09
Allotment - Rs. 3 per share payable on 1.4.09
First call - Rs. 2 per share payable on 1.7.09 and
Second and final call - Rs. 1 per share payable on 1.10.09
All the shares were subscribed for and the money received subject to certain expectations:
(a) Mr. Harry holding 500 shares paid the entire amount of his holding at the time of allotment.
(b) Mr. Joe holding 200 shares failed to pay the allotment and first call money on the due dates but paid the entire amount due at the time of paying the second and final call.
Directors have decided to charge and allow interest, as the case may be, on calls in arrear and calls in advance respectively, as per the provisions of Table-A of the Companies Act, 1956.
The defaulting shareholders duly paid their interest on calls in arrear to the company while some shareholders were also paid interest on calls in advance by the company before the finalization of accounts on 31.12.09.
You are required to pass the consolidated adjustment and other relevant entries relating to interest on calls in arrear and interest on calls in advance only in all the appropriate books of account of Bird and Company Limited at the time of closing of annual accounts.

Answer:

Journal Entries

Working Notes:
1. Calls in advance: Harry paid 500 shares × Rs. 3 (first and final calls total Rs. 3) = Rs. 1,500 on 1.4.09 for 6 months (average period approx). Interest = 1,500 × 6% × 6/12 = Rs. 45 (or varying periods for 1st and 2nd calls: First call Rs. 1,000 for 3 months = Rs. 15; Second call Rs. 500 for 6 months = Rs. 15; total approx Rs. 45 to Rs. 75 depending on exact dates).
2. Calls in arrear: Joe defaulted on allotment (Rs. 600) for 6 months and first call (Rs. 400) for 3 months. Interest at 5% p.a. = (600 × 5% × 6/12) + (400 × 5% × 3/12) = 15 + 5 = Rs. 20 (or calculated on total overdue amount for appropriate period leading to Rs. 28).

Teacher's Note:
a) Table-A prescribes 5% p.a. for calls in arrear and 6% p.a. for calls in advance.
b) Interest calculations must strictly account for the exact time period the call money remained in arrear or advance.

Question 6 [14 Marks]
The following is the Balance Sheet of Alice, Barry and Charles as on 1st January, 2010:

The partners share profits and losses in the ratio of 2:2:1, but on the above date, they decided to change that to 2:1:1. The following adjustments are required;
(a) The value of the goodwill is Rs. 15,000.
(b) The value of machinery and furniture is to be increased by Rs. 15,000 and Rs. 5,000, respectively.
(c) The value of stock and debtors is to be decreased by Rs. 3,000 and Rs. 2,000, respectively.
(d) The capitals of the partners are to be adjusted according to the new profit and loss sharing ratio and for that, necessary capital is to be brought in or excess capital is to be withdrawn.
(e) No reserve will be shown in the new Balance Sheet.
Prepare revaluation account, partners' capital accounts and re-draft the balance sheet.

Answer:

Dr. Revaluation Account Cr.

Dr. Partners' Capital Accounts Cr.

Re-drafted Balance Sheet as on 1st January, 2010

Teacher's Note:
a) Old goodwill appearing in the balance sheet must be written off among old partners in old ratio.
b) New capital is computed based on total adjusted capital in the new profit sharing ratio (2:1:1), and excess/deficiency is adjusted through cash/bank.

Question 7 [14 Marks]
The following are the ledger balances extracted from the books of Coopers and Company Limited:

Prepare the Balance Sheet of the company as per Schedule VI, Part I of the Companies Act, 1956.

Answer:

Coopers and Company Limited
Balance Sheet as per Schedule VI, Part I of the Companies Act, 1956 (Extract)

Notes to Accounts:
1. Share Capital: Issued and Subscribed (1,00,000 shares of Rs. 10 each) Rs. 10,00,000, Less: Calls in arrear (Rs. 1,000) = Rs. 9,99,000.
2. Reserves and Surplus: General Reserve Rs. 2,10,000 + Profit and Loss A/c Rs. 1,00,000 = Rs. 3,10,000.
3. Current Assets: Stock Rs. 2,50,000 + Debtors Rs. 2,00,000 + Cash Rs. 30,000 + Bank Rs. 2,47,000 = Rs. 7,27,000.
4. Current Liabilities: Creditors Rs. 2,00,000 + Provision for Taxation Rs. 68,000 + Debenture Interest Accrued Rs. 7,500 = Rs. 2,75,500.

Teacher's Note:
a) Proposed dividend is shown under Contingent Liabilities or Provisions as per company practice, but under Schedule VI format, accrued interest and taxation are current liabilities.
b) Calls in arrear are deducted directly from subscribed capital.

Question 8 [14 Marks]
Balance Sheet as on 31st March 2010

The firm was dissolved on the above balance sheet date and the following arrangements were decided upon:
(a) James agreed to pay off his brother's loan.
(b) Debtors realized Rs. 12,000.
(c) Henry took over all the investment at Rs. 12,000.
(d) Other assets realized are as follows:
(i) Plant Rs. 20,000.
(ii) Building Rs. 50,000.
(iii) Goodwill Rs. 6,000.
(e) Creditors and bills payable were settled at 5% discount.
(f) Henry accepted stock at Rs. 8,000 and James took over bills receivable at 20% discount.
(g) Realization expenses amounted to Rs. 2,000.
You are required to prepare the necessary ledger accounts in order to close the books of the firm.

Answer:

Dr. Realization Account Cr.

Dr. Partners' Capital Accounts Cr.

Teacher's Note:
a) Employees Provident Fund is an external liability and must be paid off through realization.
b) All assets and external liabilities are transferred to Realization Account at book value before processing realizations.

Question 9 [14 Marks]
The Balance sheets of Cowper and Company as on 31st December, 2009, and 31st December 2010, are given below:

Additional information:
(a) During the current year, the company paid Rs. 2,00,000 as equity dividend.
(b) During the current year, one plant whose book value was Rs. 1,00,000 was sold at a loss of Rs. 25,000 and the company purchased another plant for Rs. 8,00,000.
(c) A sum of Rs. 3,50,000 has been provided for taxation for the year.
(d) Miscellaneous expenditure included Rs. 1,10,000 as share issue expenses.
Prepare a Cash Flow Statement as per AS-3 for the year ended 31st December, 2010.

Answer:

Cowper and Company Limited
Cash Flow Statement as per AS-3 for the year ended 31st December, 2010

Teacher's Note:
a) Plant sale proceeds = Book value (Rs. 1,00,000) - Loss (Rs. 25,000) = Rs. 75,000.
b) Ensure tax paid and tax provision accounts are correctly reconciled.

Question 10 [14 Marks]
(a) The following data is available from Allen and Company Limited:
Debtors turnover ratio - 4 times.
Cost of goods sold - Rs. 6,40,000
Gross profit ratio - 20% on sales.
Closing debtors were Rs. 20,000 more than at the beginning.
Cash sales being 33 1/3% of credit sales.
From the above, calculate the amount of opening debtors and closing debtors. [3 Marks]

Answer:
Let total sales be S, Gross Profit be GP, and Cost of Goods Sold be COGS.
COGS = Rs. 6,40,000.
Gross profit ratio = 20% on sales (or 25% on cost).
Gross Profit = 25% of COGS = 6,40,000 × 25% = Rs. 1,60,000.
Total Sales = COGS + Gross Profit = 6,40,000 + 1,60,000 = Rs. 8,00,000.
Let credit sales be x. Cash sales = (1/3)x.
Total Sales = x + (1/3)x = (4/3)x = 8,00,000.
Credit Sales (x) = 8,00,000 × (3/4) = Rs. 6,00,000.
Debtors Turnover Ratio = Net Credit Sales / Average Debtors = 4.
Average Debtors = 6,00,000 / 4 = Rs. 1,50,000.
Let opening debtors be y. Closing debtors = y + 20,000.
Average Debtors = [y + (y + 20,000)] / 2 = 1,50,000.
2y + 20,000 = 3,00,000 ⇒ 2y = 2,80,000 ⇒ y = Rs. 1,40,000.
Opening Debtors = Rs. 1,40,000.
Closing Debtors = 1,40,000 + 20,000 = Rs. 1,60,000.

Teacher's Note:
a) Gross profit on sales needs to be converted to percentage on cost when cost is given.
b) Average debtors formula is used to solve for opening and closing debtor balances.

(b) The following figures have been extracted from Regal and Company Limited:
Stock at the beginning of the year - Rs. 60,000
Stock at the end of the year - Rs. 1,00,000
Stock turnover ratio - 8 units.
Selling price 25% above cost.
Compute the amount of gross profit and sales. [3 Marks]

Answer:
Average Stock = (Opening Stock + Closing Stock) / 2 = (60,000 + 1,00,000) / 2 = Rs. 80,000.
Cost of Goods Sold = Stock Turnover Ratio × Average Stock = 8 × 80,000 = Rs. 6,40,000.
Gross Profit = 25% on cost = 6,40,000 × 25% = Rs. 1,60,000.
Sales = Cost of Goods Sold + Gross Profit = 6,40,000 + 1,60,000 = Rs. 8,00,000.

Teacher's Note:
a) Stock turnover ratio formula links COGS and average stock.
b) Gross profit is computed on cost as specified.

(c) The following information is provided to you pertaining to Parker and Company Limited:
The above company has a current ratio 3:1
Its current liabilities are Rs. 25,000.
Calculate its current assets and working capital. [2 Marks]

Answer:
Current Ratio = Current Assets / Current Liabilities = 3:1.
Current Assets = Current Liabilities × 3 = 25,000 × 3 = Rs. 75,000.
Working Capital = Current Assets - Current Liabilities = 75,000 - 25,000 = Rs. 50,000.

Teacher's Note:
a) Current ratio formula gives direct relationship between current assets and current liabilities.
b) Working capital is the difference between current assets and current liabilities.

(d) The following information is available from Scott and Company Limited:
Opening stock Rs. 30,000
Closing stock Rs. 40,000
Carriage inwards Rs. 10,000
Purchases Rs. 1,00,000
Current assets Rs. 50,000
Current liabilities Rs. 20,000
Fixed assets Rs. 80,000
Indirect expenses Rs. 15,000
Sales Rs. 2,00,000
Calculate the Stock turnover ratio and Working Capital turnover ratio. [3 Marks]

Answer:
Cost of Goods Sold = Opening Stock + Purchases + Carriage Inwards - Closing Stock
COGS = 30,000 + 1,00,000 + 10,000 - 40,000 = Rs. 1,00,000.
Average Stock = (30,000 + 40,000) / 2 = Rs. 35,000.
Stock Turnover Ratio = COGS / Average Stock = 1,00,000 / 35,000 = 2.86 times.
Working Capital = Current Assets - Current Liabilities = 50,000 - 20,000 = Rs. 30,000.
Working Capital Turnover Ratio = Cost of Goods Sold (or Sales) / Working Capital = 2,00,000 / 30,000 = 6.67 times (using Sales).

Teacher's Note:
a) COGS includes direct expenses like carriage inwards.
b) Working capital turnover ratio can be calculated using either sales or cost of goods sold based on standard practice.

(e) The following information is available from Walter and Company Limited:
Stock turnover ratio - 5 times
Stock at the end of the year is Rs. 15,000 more than the stock in the beginning of the year.
Sales - Rs. 2,00,000
Gross profit ratio - 25%
Current liabilities - Rs. 50,000
Quick ratio - 0.75
Calculate the current assets of the company. [3 Marks]

Answer:
Sales = Rs. 2,00,000; Gross Profit = 25% of Sales = 2,00,000 × 25% = Rs. 50,000.
Cost of Goods Sold = Sales - Gross Profit = 2,00,000 - 50,000 = Rs. 1,50,000.
Stock Turnover Ratio = COGS / Average Stock = 5.
Average Stock = 1,50,000 / 5 = Rs. 30,000.
Let opening stock be x. Closing stock = x + 15,000.
Average Stock = [x + (x + 15,000)] / 2 = 30,000 ⇒ 2x + 15,000 = 60,000 ⇒ x = Rs. 22,500.
Closing Stock = 22,500 + 15,000 = Rs. 37,500.
Quick Ratio = Quick Assets / Current Liabilities = 0.75.
Quick Assets = 0.75 × Current Liabilities = 0.75 × 50,000 = Rs. 37,500.
Current Assets = Quick Assets + Closing Stock = 37,500 + 37,500 = Rs. 75,000.

Teacher's Note:
a) Quick assets exclude inventory from current assets.
b) Total current assets are obtained by adding closing stock back to quick assets.