Question

Calculate current ratio from the following information:

Stock Rs.50,000, Cash 30,000, Debtors 40,000, Creditors 60,000, Bills Receivable 10,000, Bills Payable 40,000, Advance Tax 4,000, Bank Overdraft 4,000

Options

• 1.29 : 1

• 1.25 : 1

• 1.22 : 1

• 1.20 : 1

Answer 1

1.29 : 1

Explanation:

Current Assets = Rs. 50,000 + Rs. 40,000 + Rs. 10,000 + Rs. 4,000 + Rs. 30,000

= Rs. l,34,000

Current Liabilities = Rs. 60,000 + Rs. 40,000 + Rs. 4,000 = Rs. 1,04,000

Current Ratio = Rs. 1,34,000 : Rs. 1,04,000 = 1.29: 1