Current Liabilities Of A Company Are Rs 75,000. If Current Ratio Is 4:1 And Liquid Ratio is 1:1-ACCOUNTING RATIO

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Current liabilities of a company are Rs 75,000. If current ratio is 4:1 and liquid ratio is 1:1, calculate value of current assets, liquid assets and inventory. 





Current Ratio =`\frac{Current    asset}{Current    liabilities}`


or, 4 = `\frac{Current asset}{75,000}`

or, 4 ❌ 75,000 = Current Asset

or, Current Asset = 3,00,000

Liquid Ratio = `\frac{Liquid  asset}{Current   liabilities}`

or, 1= `\frac{Liquid   asset}{75,000}`

Current Liabilities

Liquid Asset = 75,000

Stock Asset = Current Asset - Liquid Asset

= 3,00,000 - 75,000

= 2,25,000

Chapter-5 Accounting Ratios-II



Location: India

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