Question

Calculate the net working capital from the folllowing information
Sundry Creditors = ₹ 30,000 , Cash = ₹ 25,000 , prepaid expenses = ₹5,000
Sundry Creditors = ₹ 17,000 , Outstanding expendses = ₹ 3,000 , Bills payable = ₹ 8,000.
A. ₹32,000
B. ₹ 30 ,000
C. ₹ 88,000
D. ₹ 60,000

Answer 1

Correct Answer - A
Net working captial = Current Assets = Current Liabilities
In the question Current assets = 30,000
+ 25,000 + 5,000 = ₹ 60,000
Current liabilities = 17,000- 3,000 + 8,000 = ₹ 28,000
Therefore , Net working Capital = ₹ 60,000 - ₹ 28,000- ₹ 32,000