#### Question
6:

Current Ratio is 2.5, Working Capital is ` 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

#### Answer:

Current Ratio=Current Assets/Current Liabilities

2.5=Current Assets/Current Liabilities

Current Assets=2.5×Current Liabilities

Working Capital=Current Assets-Current Liabilities

=1,50,000=2.5

Current Assets-Current Liabilities

Current Liabilities=1,50,000/1.5

Current Liabilities=
` 1,00,000

Current Assets=2.5

Current
Assets=Current Liabilities × Ratio of Current Assets

Current
Assets=2.5×1,00,000

Current
Assets= ` 2,50,000

**Question 7:**

Working Capital is `18,00,000; Trade Payables `1,80,000; and Other Current Liabilities are `4,20,000. Calculate Current Ratio.

**Answer:
**

Current Liabilities |
= |
Trade Payables + Other Current Liabilities |

Current Liabilities |
= |
1,80,000+4,20,000 |

Current Liabilities |
= |
6,00,000 |

Current Assets |
= |
Working Capital+ Current Liabilities |

Current Assets |
= |
18,00,000+6,00,000 |

Current Assets |
= |
24,00,000 |

Current Ratio |
= |
Current Assets/ Current Liabilities |

Current Ratio |
= |
24,00,000/6,00,000 |

Current Ratio |
= |
4/1 = 4:1 |

**Question 8:**

Working Capital `9,00,000; Total Debts (Liabilities) `19,50,000; Long-Term Debts `15,00,000. Calculate Current Ratio.

**Answer:**

Current Liabilities |
= |
Total Debts - Long-Term Debts |

Current Liabilities |
= |
19,50,000-15,00,000 |

Current Liabilities |
= |
4,50,000 |

Current Assets |
= |
Working Capital+ Current Liabilities |

Current Assets |
= |
9,00,000+4,50,000 |

Current Assets |
= |
13,50,000 |

Current Ratio |
= |
Current Assets/ Current Liabilities |

Current Ratio |
= |
13,50,000/4,50,000 |

Current Ratio |
= |
3/1 = 3:1 |

#### Question
9:

Current Assets are ` 7,50,000 and Working Capital is ` 2,50,000. Calculate Current Ratio.

Answer:

Current
Assets = ` 7,50,000

Working Capital = ` 2,50,000

Working Capital = Current Assets – Current Liabilities

2,50,000 = 7,50,000 – Current Liabilities

Current Liabilities = 7,50,000 – 2,50,000 = ` 5,00,000

Current ratio= Current assets/Current
liabilities=7,50,000/5,00,000=1.5:1

#### Question 10:

A company had Current Assets of `4,50,000 and Current Liabilities of `2,00,000. Afterwards it purchased goods for `30,000 on credit. Calculate Current Ratio after the purchase.

#### Answer:

**Before
purchased goods**

Current Assets of `4,50,000 and Current Liabilities of `2,00,000

*Current Ratio after the purchase*

Current Ratio= Current Assets+** purchased goods**/ Current Liabilities+** purchased goods**

Current Ratio= 4,50,000+** 30,000**/ 2,00,000+**30,000**

Current Ratio= 4,80,000/ 2,30,000

Current Ratio= 2.09:1 = 2.09:1

**Class : 12th | Ts Grewal solution 2022-2023**

**Volume 3 | ****Chapter 4: ****Accounting Ratio**

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