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Working Capital ₹ 1,80,000; Total Debts ₹ 3,90,000; Long-term Debts ₹ 3,00,000. Calculate Current Ratio. - Accountancy

Sum

Working Capital ₹ 1,80,000; Total Debts ₹ 3,90,000; Long-Term Debts ₹ 3,00,000.
Calculate Current Ratio.

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Solution

Total Debts = 3,90,000

Long-term Debts = 3,00,000

Current Liabilities = Total Debts − Long-term Debts

= 3,90,000 − 3,00,000 = 90,000

Working Capital = Current Assets − Current Liabilities

1,80,000 = Current Assets − 90,000

Current Assets = 2,70,000

`"Current Ratio" = "Current Assets"/ "Current liability" = 270000/90000 = 3 : 1`

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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 5 | Page 91
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