Question

Currents Assets of the company is Rs. 1,50,000 and it Current Ratio is 2 : 1. Find out the Current Liabilities.

Answer 1

Answer: Current Liabilities are Rs. 75,000.

Step by step Explanation:

Given that,

Current assets are Rs. 1,50,000,

Current Ratio is 2 : 1.

We know that,

$\tt{Current \: \: Ratio= \frac{Current \: \: Assets}{Current \: \: Liabilities}}$

$\tt{\frac{2}{1} = \frac{1,50,000}{Current \: \: Liabilities}}$

Current Liabilities = 1,50,000 / 2

= Rs. 75,000

Thus, The current Liabilities are Rs. 75,000

Current Ratio :

This current ratio compares the Current Assets with Current Liabilities.

The ideal current ratio is 2 : 1, indicating that Current Assets are twice the Current Liabilities.

Examples of Current assets: Cash and Bank Balance, Bills Recievable, Stock and Inventories Short term loans, etc.

Examples of Current Liabilities: Bills Payable, Sundry Creditors, Outstanding expenses Bank Overdraft, etc.

Answer 2

Given :-

Currents Assets of the company is Rs. 1,50,000 and it Current Ratio is 2 : 1.

To Find :-

Current liabilities

Solution :-

Current Ratio is defined as the ratio between Current Assests and Current liabilities. We are given with current assests and current ratio

Current Ratio = Current Assests of company/Current liabilities of company

2:1 = 1,50,000/C

2/1 = 1,50,000/C

150000(1) = 2(C)

150000 = 2C

150000/2 = C

75,000 = C