Question

A company had Current Assets of ₹ 3,00,000 and Current Liabilities of ₹ 1,50 000, having a Current Ratio of 2:1. What will be the company's revised Current Ratio after it collects ₹ 20,000 cash from its debtors of ₹ 25,000, the remaining debtors being bad?

विकल्प

• 2.56 : 1

• 2.03 : 1

• 2.13 : 1

• 1.97 : 1

Answer 1

1.97 : 1

Explanation:

Current Assets = ₹ 3,00,000

Current Liabilities = 1,50,000

New current assets = 3,00,000 - 25,000 + 20,000 = ₹ 2,95,000

New current ratio = `"Current Assets"/"Current Liabilities"`

`= (2,95,000)/(1,50,000)`

= 1.97 : 1