Question

Current ratio = 2.8
Acid Test ratio = 1.5
Working capital = Rs. 1,62,000
Calculate :
(i) Current Assets (ii) Current Liabilities
(iii) Liquid Assets (iv) Stock.

Answer 1

Explanation:

Solution :

Working Capital = Rs 1,62,000 (Given)

Current Ratio = 2.8 (Given)

Acid-test Ratio = 1.5 (Given)

Current Ratio = $\dfrac{Current \: Assets}{Current \: Liabilities}$

Let, Current Liabilities be x

So,

Current Assets = 2.8x

Working Capital = Rs 1,62,000

Working Capital = Current Assets - Current Liabilities

$\longrightarrow$ 1,62,000 = 2.8x - x

$\longrightarrow$ 1,62,000 = 1.8x

$\longrightarrow$ x = 1,62,000 / 1.8

$\longrightarrow$ x = 90,000

Current Liabilities = Rs 90,000

Current Assets = 2.8x

$\longrightarrow$ 2.8 × 90,000

$\longrightarrow$ 2,52,000

Current Assets = Rs 2,52,000

• Acid -Test Ratio = 1.5

Acid -Test Ratio = $\dfrac{Liquid \: Assets}{Current \: Liabilities}$

Current Liabilities = Rs 90,000

Liquid Assets = 90,000 × 1.5

$\longrightarrow$ 1,35,000

Liquid Assets = Rs 1,35,000

Stock :

Stock = Current Assets - Liquid Assets

$\longrightarrow$ 2,52,000 - 1,35,000

$\longrightarrow$ 1,17,000

Stock = Rs 1,17,000

Therefore,

(i) Current Assets = Rs. 2,52,000

(ii) Current Liabilities = Rs. 90,000

(iii) Liquid Assets = Rs. 1,35,000

(iv) Stock = Rs. 1,17,000

Answer 2

Explanation:

Current Ratio =Current Assets\Current Liabilities

Let,

Current Liabilities =x

Current Assets = 2.8x

1,62,000 = 2.8x - x

1,62,000 / 1.8

x = 90,000

Current Liabilities = 90,000

Acid -Test Ratio =Liquid Assets/Current Liabilities

Liquid Assets = 90,000 × 1.5

Liquid Assets = 1,35,000

Stock = Current Assets - Liquid Assets

2,52,000 - 1,35,000

Stock = 1,17,000