Page 375 - VIRANSH COACHING CLASSES

2 : Current Liabilities of company were * 1,50,000 and its current ratio is 3:1 Find Current
Assets.
Solution 2 :
Current Assets
Current Ratio = Current Liabilities

3 Current Assets
= 1,50,000
1
Current Assets = 3 × 1,50,000
= ` 4,50,000

Activity 2 : Current Assets of company is ` 6,00,000 and its Current Ratio is 2: 1. Find Current
Liabilities. (Ans = ` 3,00,000)
3 :
Total Assets = ` 2,20,000
Fixed Assets = ` 1,00,000
Capital Employed ` 2,00,000
There were no long term investments. Calculate Current Ratio.
Solution 3 : Calculation of Current Ratio

Current Assets
Current Ratio = Current Liabilities

Current Assets = Total Assets - Fixed Assets
= 2,20,000 - 1,00,000

= ` 1,20,000
Current Liabilities = Total Assets - Capital Employed
= 2,20,000 - 2,00,000
= 20,000
120,000
Current Ratio =
20,000
= 6:1
4 : Calculate the Quick ratio from the following
Working Capital ` 50,000, Current Assets ` 60,000, Stock ` 10,000 Prepaid Expense ` 4,000

Solution : Quick Assets = Current Assets - Stock - Prepaid Expense
= 60,000 - 10,000 - 4,000
= 46,000
∴ Quick Liabilities = Current Assets - working Capital
= 60,000 - 50,000
= 10,000

Quick Assets
Quick Ratio =
Quick liabilities
46,000 46
= = = 4.6 : 1
10,000 10

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