Question

Current Ratio = `(₹ 2,00,000)/? = 4 : 1`

Answer 1

Current Ratio = `(₹ 2,00,000)/bbunderline(₹ 50,000) = 4 : 1`

Explanation:

Given:

$\text{Current Assets} = \text{₹ } 2,00,000$

$\text{Current Ratio} = 4 : 1$

$$\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}$$ 

Substituting the values into the formula:
$$\frac{2,00,000}{\text{Current Liabilities}} = \frac{4}{1}$$

$$4 \times \text{Current Liabilities} = 2,00,000$$

$$\text{Current Liabilities} = \frac{2,00,000}{4} ={₹\ 50,000}$$