Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

What will be the total amount of current liabilities if the following information is available? 

PARTICULARS AMOUNT (₹)
Share capital 3000000
Securities premium reserve 200000
Reserves and surplus 1000000
Loan from IFCI @10% 2000000
5% Bonds 2500000
Long term provision 300000
Short term provision 100000
Short term borrowings 400000
Trade payables 500000

 

Options:

₹100000

₹1000000

₹2000000

₹1500000

Correct Answer:

₹1000000

Explanation:

The correct answer is option 2 i.e. ₹1000000

Short term provision + Short term borrowings + Trade payables
100000 + 400000 + 500000
1000000