Question

the current assets of a company are Rs.1500000.its current ratio of 3:1 and liquid ratio is 1.25:1.calculate the amount of current liabilities and liquid assets. plz help me


​

Answer 1

Answer:

Current liabilities = 5,00,000

Liquid assets = 6,25,000

Explanation:

Given :

• The current assets = Rs 15,00,000
• Current ratio = 3 : 1
• Liquid ratio = 1.25 : 1

To find :

• Current liabilities
• Liquid assets

Solution :

Current ratio = 3 : 1

$\tt{Current \: Ratio = \dfrac{Current \: assets}{Current \: liabilities} = \dfrac{3}{1}}$

Let,

Current liabilities = x

⇒ $\tt{Current \: ratio \: = \dfrac{15,00,000}{x}= \dfrac{3}{1}}$

⇒ 3x = 15,00,000

⇒ $\tt{x=\dfrac{15,00,000}{3}}$

⇒ x = 5,00,000

Current liabilities = 5,00,000

_________________________

$\tt{Liquid \: ratio \: = \dfrac{Liquid \: assets}{Current \: liabilities}}$

$\tt{Liquid \: ratio\: = \: \dfrac{Liquid \: assets}{Current \: liabilities} = \dfrac{1.25}{1}}$

⇒ Current liabilities = 5,00,000

$\tt{Liquid \: ratio = \dfrac{Liquid \: assets}{5,00,000} = \dfrac{1.25}{1}}$

Liquid assets = 5,00,000 × 1.25

⇒ 6,25,000

⇒ Liquid assets = 6,25,000

Therefore,

Current liabilities = 5,00,000

Liquid assets = 6,25,000