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If current ratio =2.5:1, liquid ratio …

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If current ratio =2.5:1, liquid ratio =1.2:1 and inventory =78000 .find current asset & current liability.

Posted by Hemant Kumar 7 years, 11 months ago

CBSE > Class 12 > Accountancy

2 answers

Nisha Deshwal 7 years, 11 months ago

From the current ratio. we get. 2.5CL=CA and from the liquid ratio. we get , 1.2CL=LA ..So from formula LA =CA-Inventory ......1.2CL=2.5CL- 78000....1.3Cl =78000....CL = 78000/1.3 = 60,000.....now, CR = CA / CL .....2.5 = CA/60,000.....2.5*60,000= CA = 1,50,000

Rahul Pandey 7 years, 11 months ago

Let CA be x We know that LA = CA - Inventory LA= CA - 78000 Now C.R = CA/CL 2.5/1= CA/CL Therefore CA= 2.5CL....... (1.) Now L.R = LA/CL 1.2/1= CA-78000/CL Therefore CA= 1.2CL + 78000........ (2.) Solving equation 1 and 2 We get 2.5CL= 1.2CL + 78000 1.3CL= 78000 CL= 60000 Therefore from eq 1 CA= 150000 And LA= 72000

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