A Company has current ratio of 3-1 and quick ratio of 9-7 nbsp-if inventories - 175000 then find current assets - current liabilities And working capital nbsp- nbsp- nbsp-

Dear Student, Current Ratio Current Assets(CA) 3 Equation nbsp; Current Liabilities(CL) ...

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Standard XII

Accountancy

Admission of New Partner

A Company has...

Question

A Company has current ratio of 3:1 and quick ratio of 9:7 if inventories = 175000 then find current assets , current liabilities And working capital

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Solution

Dear Student,

Current Ratio Current Assets(CA) 3 Equation

Current Liabilities(CL) 1

CA=3CL ...E1

Liquid Ratio CA-Stock 9 Equation

CL 7

3CL-175000 9 Equation using E1

CL 7

21CL-1225000 9CL

12CL Rs 1225000

Ans CL Rs 1,02,083

Ans CA=3CL Rs 3,06,250 as per E1

Ans Working Capital(CA-CL) Rs 2,04,167

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Current Ratio	Current Assets(CA)	3	Equation
	Current Liabilities(CL)	1	Equation

	CA=3*CL		...E1

Liquid Ratio	CA-Stock	9	Equation
	CL	7	Equation

	3CL-175000	9	Equation using E1
	CL	7	Equation using E1

	21CL-1225000	9CL

	12CL	Rs 1225000

Ans	CL	Rs 1,02,083

Ans	CA=3*CL	Rs 3,06,250	as per E1

Ans	Working Capital(CA-CL)	Rs 2,04,167