Accountancy, asked by Sagarikasamantaray, 1 year ago

pls solve all my problems​

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Answered by babushall
1

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Answered by PiaDeveau
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Current ratio = 2.5

Explanation:

Given:

Debtor = 150,000

Stock = 50,000

Bills receivable = 40,000

Prepaid expense = 10,000

Creditor = 60,000

Bills payable = 40,000

Computation of current assets:

Current assets = Debtor + Stock + Bills receivable + Prepaid expense

Current assets = 150,000 + 50,000 + 40,000 + 10,000

Current assets = 250,000

Computation of current liability:

Current liability = Creditor + Bills payable

Current liability = 60,000 + 40,000

Current liability = 100,000

Computation of Current ratio:

Current ratio = Current assets / Current liability

Current ratio = 250,000 / 100,000

Current ratio = 2.5

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