Current Ratio = Current Assets / Current liabilities

**Before payment of Rs 10,000 to creditors **

= Cash / Creditors

= Rs 1,50,000 / Rs 75,000

= 2 : 1

**After payment of Rs 10,000 to creditors**

Current Ratio = Cash / Creditors

= (Rs 1,50,000 – Rs 10,000) / (Rs 75,000 – Rs 10,000)

= 2.15 : 1

Hence, it can be observed that the current ratio has increased from 2 : 1 to 2.15 : 1