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If the current ratio is 2:1 and working capital is Rs 60,000 what is the value of current assets?
  1. Rs. 60000
  2. Rs. 100000
  3. Rs. 120000
  4. Rs. 180000
Explanation

current ratio = current assets (C.A)/ Current 

Liabilities (C.L) = 2/1 

s, CA = 2 CL

Now working capital = current assets (CA) minus Current Liabilities (C.L) = Rs 60000

So, C.A - C.L = 60000

2 C.L - CL = 60000

C.L = Rs. 60000

Now C.A = 2 x 60000

C.A = Rs. 120000

ND5-09-2023ma

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