Question

Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

Answer 1

`"Current Ratio" = "Current Assets"/ "Current liability"`

2.5 =`"Current Assets"/ "Current liability"`

Current Assets = 2.5 Current Liabilities

Working Capital = Current Assets - Current Liabilities

1,50,000 = 2.5  Current Liabilities - Current Liabilities

Current Liabilities = `150000/1.5`

Current Liabilities = Rs 100000

Current Assets = 2.5 Current Liabilities

Current Assets = 2.5 × 100000 = Rs 250000