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Following is the Balance Sheet of Raj Oil Mins Limited as at March 31,2015. Calculate current ratio.

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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.

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