LIVE Course for free

Rated by 1 million+ students
Get app now
0 votes
in Accounts by (64.6k points)

Calculate Current Ratio if: Inventory is Rs. 6,00,000; Liquid Assets Rs. 24,00,000; Quick Ratio 2 : 1.

1 Answer

+1 vote
by (59.7k points)
selected by
Best answer

Quick ratio = \(\frac {\textit{Liquid assets}}{\textit{Current Liabilities}} \)

or,2 = \(\frac {\textit{24,00,000}}{\textit{Current Liabilities}} \)

Current liabilities =\(\frac {\textit{24,00,000}}{\textit{2}} \)

= 12,00,000

Current Assets = Liquid Asset + Inventory 

= 24,00,000 + 6,00,000 = 30,00,000

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

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.