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.
