Question

What will be quick ratio ? If current ratio = 3:1, stock = rs 30000, total current liabilities = rs. 60000​

Answer 1

Explanation:

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

Total Current Liabilities are Rs. 60,000

Current Assets = 60,000 × 3

Current Assets = 1,80,000

Quick Ratio = ??

★ Quick Ratio :

Quick Ratio = Quick Assets / Current Liabilities

Current Liabilities are Rs. 60,000

Stock = Rs. 30,000

Quick Assets = Current Assets - Stock

⇒ 1,80,000 - 30,000

⇒ 1,50,000

Quick Assets = 1,50,000

Quick Ratio = Quick Assets / Current Liabilities

⇒ 1,50,000 / 60,000

⇒ 2.5 / 1

Quick Ratio = 2.5 : 1

Therefore,

Quick Ratio is 2.5 : 1