Question

14
11.
The current ratio BM Ltd, is 2:1, while quick ratio is 1.80:1. If
the current liabilities are Rs. 40,000, the value of stock will
be :
(a) Rs. 6,400
(c) Rs. 10,000
(b) Rs. 8,000
(d) Rs. 12,000​

Answer 1

Explanation:

•CA=2CL

CA=2*40,000= 80,000

•QA=1.80CL

QA=1.80*40,000=72,000

•VALUE OF STOCK = CA-QA

VALUE OF STOCK = 80,000-72,000=8000

Answer 2

Answer:

Concept:

Current ratio= Current assets/Current Liabilities

Quick Ratio= Quick Assets/Current Liabilities

Solution:

Current Ratio= CA/40,000

2= CA/40,000

CA= 80,000

Quick Ratio= CA- stock/40,000

1.8= 80,000-stock/40,000

72000= 80,000-stock

Stock=8000

Therefore, correct option is Rs 8000.