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Question 6 Chapter 14 of Class 12 Part – 2 – 2024
I. Liquidity Ratios
6. (Current Assets & Current Liabilities/Current Ratio given)
The Current ratio of the company is 3 : 1 and the working capital is ₹ 1,00,000. Calculate of current assets and current liabilities.
1. Calculation of Current Assets
| Working Capital | = | Current Assets – Current Liabilities |
| 1,00,000 | = | 3 - 1 |
| 2* | = | ₹ 1,00,000 |
| Current Assets | = | ₹ 1,00,000 | X | 3 |
| 2 | ||||
| = | ₹ 1,50,000 |
2. Calculation of Current Liabilities
| Current Liabilities | = | ₹ 1,00,000 | X | 1 |
| 2 | ||||
| = | ₹ 50,000 |
*If WC is 2 then Current Assets = 3
| ₹ 1,00,000 | X | 3 | = | ₹1,00,000 |
| 2 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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