Question

Manilal Ltd, is a manufacturing company. Its operating cycle is 15 months. On 31^st March, 2025, its trade receivable of ₹ 70,000 includes ₹ 20,000 which is due to be collected on 13^th April, 2026 and the remaining after 30^th June, 2026.

You are required to calculate current and non-current assets of the company as at 31st March, 2025.

Answer 1

Given:

i. Operating cycle = 15 months

ii. Trade receivables = ₹ 70,000

iii. ₹ 20,000 is due on 13th April 2026

iv. ₹ 50,000 is due after 30th June 2026

v. Date of Balance Sheet = 31st March 2025

Therefore, assets to be realized on or before 30th June 2026 (i.e., within 15 months) will be considered current.

₹ 20,000 receivable on 13th April 2026 ⇒ falls within 15 months from 31st March 2025 ⇒ Current Asset

₹ 50,000 receivable after 30th June 2026 ⇒ falls outside 15 months ⇒ Non-Current Asset

So,

Current Assets = ₹ 20,000

Non-Current Assets = ₹ 50,000