Question

find current assets liabilities if current ratio is 2.5:1 and liquid ratio is 1.2:1 . value of inventory is 78000/- .

Answer 1

Here is your solution:
Liquid assets (LA) = Current assets (CA) – Stock = CA – Rs. 78000

Now, CA/CL, where current ratio is 2.5:1 CA = 2.5CL
Liquid ratio is 1.2:1
LA/CL = 1.2:1
LC/CL = 1.2:1
LA=1.2 CL
CA – Rs 78000 = 1.2CL equation 1
2.5CL – Rs 78000 = 1.2CL equation 2
2.5CL – 1.2CL = 78000
1.3CL = 78000
CL = 78000 / 1.3 = Rs 60,000

Put the value in an equation 2, we get CA = 2.5 * 60,000 = Rs 1,50,000

Put the value in an equation 1, we get LA = 1,50,000 – 78000 = Rs, 72,000