Current Ratio = \(\frac {\textit{Current Assets}}{\textit{Current Liabilities}} \)

Current assets = Stock + Debtors + Cash at bank

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

= 1,44,000

Current liabilities = Trade Payables

= 72,000

Current Ratio = \(\frac{1,44,000}{72,000}\) = \(\frac{2}{1}\) = 2:1.