1.

Calculate Current Ratio from the following information:ParticularsAmount (Rs.)Inventories50,000Bill Receivable50,000Advance Tax4,000Cash30,000Bill Payable1,00,000Bank Overdraft4,000

Answer»

Current Ratio\(\cfrac{Current \,Assets}{Current\,Liabilities}\)

Current Assets = Inventories + Trade receivables + Advance tax + Cash and cash equivalents

= Rs 50,000 + Rs 50,000 + Rs 4,000 + Rs 30,000

= Rs 1,34,000

Current Liabilities =  Trade Payables + Short term borrowings

= Rs 1,00,000 + Rs 4,000

= Rs 1,04,000

Current ratio\(\cfrac{Rs \,1.34,000}{Rs \,1,04,000}\) = 1.29 : 1



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