Question

ABC Ltd total current are 650000 and total current liabilities rps 350.000 what will be the current capital

Answer 1

Answer:

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Answer 2

Answer:

649650 is the required current capital .

Explanation:

Given , Total current = 650000

and current liabilities = 350.000

As we know that ,

Working Capital = Current Assets - Current Liabilities.

Where , Working capital is the portion of a company's capital that is used in day-to-day operations,  so it is desirable for a company to hold substantially more current assets than current liabilities.

Now put the value in the above formula we get ,

Working capital = 650000 - 350.000 = 649650

Hence , Current capital is 649650.

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