X Ltd., has a current ratio of 2:1 and quick ratio of 1.5:1. If excess of current assets over quick assets represented by inventories is Rs. 24,000. Calculate current assets and current liabilities.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Current Assets Rs. 96,000 and Current Liabilities Rs. 48,000
Quick assets are current assets less inventories, so the gap between the current ratio and the quick ratio is made up of inventories.
Let current liabilities = x
Current assets = 2x and quick assets = 1.5x
Inventories = 2x − 1.5x = 0.5x = Rs. 24,000
x = Rs. 24,000 ÷ 0.5 = Rs. 48,000
Current liabilities = Rs. 48,000
Current assets = 2 × Rs. 48,000 = Rs. 96,000
Check: quick assets = Rs. 96,000 − Rs. 24,000 = Rs. 72,000, and Rs. 72,000 ÷ Rs. 48,000 = 1.5, the quick ratio given.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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