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Explanation:
Answer:
Current Ratio = 2.67 : 1
Liquid Ratio = 2 : 1
Explanation:
When stock was taken as ₹ 60,000
Current Ratio =
Liquid Ratio =
Current Ratio :
Let,
Current Liabilities = x
Current assets = 3x
Liquid Ratio :
Current Liabilities = x
Liquid assets = 2x
Stock = Current assets - Liquid assets
⇒ 60,000 = 3x - 2x
⇒ 60,000 = x
⇒ x = 60,000
Current Liabilities = 60,000
Current assets = 3x
⇒ 60,000 × 3
Current assets = 1,80,000
Liquid assets = 2x
⇒ 60,000 × 2 = 1,20,000
Liquid assets = 1,20,000
When stock is taken ₹ 40,000
Current assets = 1,80,000
⇒ 1,80,000 - 60,000
⇒ 1,20,000
⇒ 1,20,000 + 40,000
⇒ 1,60,000
Current assets = 1,60,000
Current Ratio =
Liquid assets = Current assets - Stock
⇒ 1,60,000 - 40,000
⇒ 1,20,000
Liquid Ratio =
Therefore,
Current Ratio = 2.67 : 1
Liquid Ratio = 2 : 1
Answer:
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