Question

if current ratio is 3:1 and working capital is rs 40000 what will be amount of current assets

Answer 1

Answer:

Let the ratio 3:1 be 3x and x

3x+x=40000

4x=40000

x=40000÷4

x=10000

now,

1) 3x=3*10000

=30000

2)x=1*10000

=10000

Answer 2

The amount of Current Assets will be Rs. 60,000.

Explanation:

Solution :

Current Ratio = Current Assets/Current Liabilities

Current Ratio = 3 : 1 (Given)

Current Ratio = Current Assets/Current Liabilities = 3/1

Let,

Current Liabilities = x

Current Assets = 3x

Working Capital = Rs. 40,000

Working Capital = Current Assets - Current Liabilities

⇒ 40,000 = 3x - x

⇒ 40,000 = 2x

⇒ 2x = 40,000

⇒ x = 40,000/2

⇒ x = 20,000

Current Liabilities = Rs. 20,000

Current Assets = 3x

⇒ 3 (20,000) = 60,000

Current Assets = Rs. 60,000

Therefore, The amount of Current Assets will be Rs. 60,000.