Question : A company’s Current assets are Rs.5,00,000 and its current liabilities are Rs.3,00,000. Subsequently, it paid Rs.1,00,000 to its trade payables. What will be the current ratio?
Option 1: 1.66:1
Option 2: 2:1
Option 3: 1.2:1
Option 4: None of the above
Correct Answer: 2:1
Solution : Current Asset = 500000 - 100000 (Cash paid) = 4,00,000 Current Liability = 3,00,000 - 1,00,00 = 2,00,000 Current ratio = Current Asset / Current Liability = 4,00,000/2,00,000 = 2:1 Hence option 2 is the correct answer.
Question : A company liquid assets are Rs.5,00,000 and its current liabilities are Rs.3,00,000. Thereafter, it paid Rs.1,00,000 to its trade payable. Quick Ratio will be -
Question : A firm had current assets of Rs.3,00,000 It then paid trade payables of Rs.50,000. After this payment, the current ratio was 2.5:1 The amount of Current Liabilities and Working Capital after the payment are ___________.
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