Charu Ltd. has a liquid ratio of $1.5$ . Its Net working capital is Rs. $1, 20, 000$ and its inventory is Rs. $80, 000$ . The current assets are _________.

Rs.

1, 00, 000

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Rs.

3, 00, 000

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Rs.

3, 50, 000

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Rs.

2, 00, 000

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Solution

The correct option is A Rs. $2, 00, 000$
Net working capital = current asset - current liabilities
1,20,000 = 80,000 + current asset - current liabilities
1,20,000 + 80,000 = current asset
2,00,000 = current asset

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\begin{matrix} Capital and Liabilities & 2010 & 2011 & Assets & 2010 & 2011 (Rs.) & (Rs.) & (Rs.) & (Rs.) Equity Share Capital & 2, 00, 000 & 3, 00, 000 & Fixed Assets & 4, 00, 000 & 6, 00, 000 Profit and Loss & 1, 60, 000 & 2, 00, 000 & Stock & 1, 30, 000 & 1, 50, 000 Bank Loan & 1, 00, 000 & 80, 000 & Debtors & 1, 00, 000 & 60, 000 Accumulated Depreciation & 80, 000 & 1, 00, 000 & Bills Receivable & 20, 000 & 30, 000 Creditors & 1, 40, 000 & 1, 20, 000 & Bank & 90, 000 & 30, 000 Proposed Dividend & 60, 000 - ------ - & 70, 000 - ------ - 7, 40, 000 - -------- - & 8, 70, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 7, 40, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 8, 70, 000 - -------- - \end{matrix}

Additional Information:
Machine costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.

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Charu Ltd. has a liquid ratio of 1.5. Its Net working capital is Rs.1,20,000 and its inventory is Rs.80,000. The current assets are _________.

The correct option is A Rs.2,00,000Net working capital = current asset - current liabilities 1,20,000 = 80,000 + current asset - current liabilities1,20,000 + 80,000 = current asset 2,00,000 = current asset

Charu Ltd. has a liquid ratio of $1.5$ . Its Net working capital is Rs. $1, 20, 000$ and its inventory is Rs. $80, 000$ . The current assets are _________.

The correct option is A Rs. $2, 00, 000$
Net working capital = current asset - current liabilities
1,20,000 = 80,000 + current asset - current liabilities
1,20,000 + 80,000 = current asset
2,00,000 = current asset