Question

Current ratio 5 : 3. Working Capital Rs. 2,40,000. Current Liability will be
(a) Rs. 6,00,000 (b) Rs. 4,80,000 (c) Rs. 3,60,000 (d) none of these​

Answer 1

Answer :

D) None of the Above

Explanation :

Given :

Cûrrent Ratio - 5 : 3

Working Capital - 2,40,000

To Find :

Current Liabilities

Solution :

Current Ratio = 5 : 3 = 1.6

Current Assets = 2,40,000 ( Working Capital )

${\underline{\boxed{\sf{Current \: Ratio \: = \tfrac{Current \: Assets}{Current \: Liabilties} }}}}$

Let Current Liabilities be x,

$\to \: \frac{240000}{x} = \frac{5}{3}$

$\to \: 240000 \times 3 = 5 \times x$

$\to \: 5x = 720000$

$\to \: x = \frac{720000}{5}$

$\to \: x = 144000$

$\therefore \sf Current \: Liabilities \: = 144000$

$= \sf \: \tfrac{240000}{144000} = 5 : 3 = 1.6$