Question

Current ratio 3:1 , working capital 4,00,000 find current assets and current liabilities

Answer 1

current ratio = current asset / current liabilities

3/1 = current asset / current liabilities

CA = 3 CL ------------equation 1

working capital = current asset - current liabilities

400000= current asset - current liabilities

400000 = 3CL - CL

400000=2CL

2CL = 400000

CL=400000/2

CL =200000

current liabilities = 200000

current asset = 400000+current liabilities

=400000+200000

current asset =600000

hope its useful..!!

Answer 2

Explanation:

Solution :

Current ratio= 3:1

Current ratio =

$\frac{Current \: Assets}{Current \: Liabilities} = \frac{3}{1}$

Let,

Current Liabilities = x

Current Assets = 3x

Working capital = 4,00,000

Working capital = Current Assets - Current Liabilities

4,00,000 = 3x - x

4,00,000 = 2x

x = 4,00,000/ 2

x = 2,00,000

Current Liabilities = Rs. 2,00,000

Current Assets = 3x

3 × 2,00,000

6,00,000

Current Assets = Rs. 6,00,000

Hence, Current Assets = Rs. 6,00,000 and Current Liabilities = Rs. 2,00,000