Question

When current ratio is 2:5 and the amount of current liabilities is
int
25000 Rs, what is the amount of current assets ?
Ese
(A) 762,500 (B) * 12,500 (C) * 10,000 (D) None of these
​

Answer 1

Answer:

(C). Rs. 10,000

The amount of Current Assets is Rs. 10,000

Explanation:

Given :

• Current ratio = 2 : 5

• Current Liabilities = Rs 25,000

To find :

• The amount of Current Assets

Solution :

$\sf{Current\:ratio = {\dfrac{Current \: Assets}{Current \: Liabilities} \: = \dfrac{2}{5}}}$

Let,

Current Assets = x

Current Liabilities = Rs 25,000

Current ratio = $\sf{\dfrac{2}{5} = \dfrac{x}{25,000}}$

⇒ 5x = 50,000

⇒ x = $\sf{\dfrac{50,000}{5}}$

⇒ x = 10,000

Current Assets = Rs. 10,000

∴ (C). Rs. 10,000

The amount of Current Assets is Rs. 10,000