Accountancy, asked by teddybaby2755, 7 months ago

a ltd. gas a current ratio of 3.5 :1 and acid -test ratio of 2:1. if the inventory is ₹ 30,000,find out its current assets and total current liabilities.

Answers

Answered by pv057966
11

Answer:

Current liabilities = 20,000

Current assets = 70,000

Explanation:

Let current liabilities = X

Current ratio =

Currentliaabilities

Currentassets

= 3.5

⇒ Current assets = 3.5X

Acid test ratio =Currentliabilities

Liquidassets

= 2

⇒ Liquid assets = 2X

Liquid assets = Current assets - Inventory

⇒ 2X = 3.5X - 30,000

⇒ 1.5X = 30,000

⇒ X = 20,000

Current liabilities = X = 20,000

Current assets = 3.5X = 70,000

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