Question

9.
If current ratio is given as 2.5, liquid assets are Rs. 60,000,
then the value of the stock will be
(a) Rs. 60,000
(c) Rs. 20,000
(b) Rs. 40,000
(d) Rs. 30,000​

Answer 1

Answer:

Current Ratio = Current Assets (C.A)/ Current Liabilities (C.L)  = 2/1

So, CA= 2 CL

Now, Working Capital = Current Assets(C.A) minus Current Liabilities (C.L) = Rs.60000

So, C.A - C.L = 60000

       2 C.L-CL = 60000

        C.L = Rs.60000

Now, C.A = 2 x 60000 = Rs.120000

Explanation:

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