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# Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio. - Accountancy

ConceptTypes of Ratios

#### Question

Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio.

 Particulars (Rs) I. Equity and Liabilities: 1. Shareholders’ funds a) Share capital 7,90,000 b) Reserves and surplus 35,000 2. Current Liabilities a) Trade Payables 72,000 Total 8,97,000 II. Assets 1. Non-current Assets a) Fixed assets Tangible assets 7,53,000 2. Current Assets a) Inventories 55,800 b) Trade Receivables 28,800 c) Cash and cash equivalents 59,400 Total 8,97,000

#### Solution

"Current Ratio" = "Current Assets"/"Current Liablities"

= "1,44,000"/"72,0000"

=2 : 1

Current Assets = Inventories +Trade Receivables + Cash

= 55,800 + 28,800 + 59,400

= Rs 1,44,000

Current Liabilities = Trade Payables = Rs 72,000

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Solution Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio. Concept: Types of Ratios.
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