Question

If current assets are ₹2,50,000 and current liabilities are ₹1,25,000 what will be current ratio?
$(2,50,000 \div 1,25,000=2:1)$

Answer 1

hello friend this is your Answer
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(2,50,000÷1,25,000=2:1) 

Your needed current ratio

Answer 2

The current ratio is a liquidity ratio that calculates the ability of a company to meet short-term or due obligations within a year.

• Using the Balance Sheet, the current ratio is calculated by dividing the total current assets by the total current liabilities.

• Current ratio is calculated as = Current Assets/ Current Liabilities

• Current assets = 2,50,000 (Given)

        Current Liabilities = 1,25,000 (Given)

        Therefore, ratio  = CA/ CL

                                    = 2,50,000/1,25,000

                                    = 2/1

• Therefore, the current ratio will be 2:1.