Quick ratio = Liquid asset/ current liabilities = 300000/240000 = 1.25:1 Liquid assests= Current assets - inventories - income tax paid in advance = 720000-390000-30000 = ₹300000 Current liabilities= Trade payables + rent payable+ dividend payable +bank overdraft + provision for tax = 120000+10000+30000+25000+55000 = ₹240000 |