Question

Working capital is Rs 7,20,000; Trade payable is Rs 40,000; Other current liabilities Rs 2,00,000; Current ratio is
my 2 accounts got banned today :-D​

Answer 1

Answer:

Current Ratio =Current AssetsCurrent Liabilities=Rs960000Rs240000=4:1Current AssetsCurrent Liabilities=Rs960000Rs240000=4:1

Current Liabilites=Trade Payables +other current Liabilites

=Rs 40000+Rs200000=Rs240000.

Working Capital =current Assets -Current Liabilities

=Rs720000+Rs240000=Rs960000.

Answer 2

Given: working captial: ₹7,20,000, trade payable: ₹40,000, other current liabilities: ₹2,00,000.

To Find: current ratio

 

Solution:

As we know that Working capital = Current assets - current liabilities

⇒ Current assets = working capital-current liabilities    

Since current assets are not given, we first need to calculate the amount of current assets.

 

Current liabilities = trade payable + other current liabilities

  ⇒ Current liabilities = 40,000+2,00,000

 ⇒ Current liabilities = 2,40,000

Current assets = working capital - current liabilities    

 ⇒ Current assets = 7,20,000 - 2,40,000

 ⇒ Current assets = 4,80,000

Current Ratio = current assets ÷ current liabilities

   ⇒ Current ratio: 4,80,000 ÷ 2,40,000

   ⇒ Current ratio = 2:1