Question

Current ratio is 2:5.Current liability is Rs.30000. The Net working capital is
(A) Rs. 18,000
(B) Rs.45,000
(C) Rs.(-) 45,000
(D) Rs.(-)18000​

Answer 1

The answer is (D)

Rs.(-)18000

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Answer 2

Answer:

(D) Rs.(-)18000

Explanation:

Current ratio = current assets ÷ current liabilities

2:5 = current assets ÷ 30000

0.4 = current assets ÷ 30000

0.4 × 30000 = current assets

So , current assets = 12000

Working capital = current assets - current liabilities = 12000 - 30000 = (-)18000

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