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Home Questions 8J5P8ZZQXP
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

ABC Ltd has a business of shoes in New Delhi. From the last year profits of the company has reduced so the company wants to know the earning capacity and liquidity position of its company so that it can take correct measures. Following information is available to the company.

1) Cash revenue from operations was 1/3rd of total revenue from operations
2) Cash revenue from operations was ₹140000
3) Cash purchase was 25% of credit purchase
4) Cash purchase was ₹50000
5) Opening inventory ₹30000
6) Closing inventory was ₹10000 more than opening inventory
7) Carriage is ₹12000 & Non current liabilities is ₹80000
8) Total assets is ₹800000 & fixed assets is ₹540000
9) Non-current investments ₹110000 & Shareholders funds ₹600000

Find out the Current assets of the company.

Options:

₹100000

₹150000

₹175000

₹125000

Correct Answer:

₹150000

Explanation:

The correct answer is option 2- ₹150000.

Current assets = Total assets - Fixed assets - Non current investments
                      = 800000 - 540000 - 110000
                      = ₹150000

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