The Current Ratio of a Company is 2:1. State whether the current ratio
(i) improve
(ii) reduce 
(iii) not alter
from the transactions given below.
Sale of Office Equipment for ₹8,000 (Book Value ₹9,000).

Improve

Sale of an Office Equipment for ₹8,000 (Book Value ₹9,000):
Suppose current assets are 200000 and current liabilities are 100000. Sale of Office Equipment (e.g., Typewriter etc.) results in an increase in Cash Balance by 8,000 and this leads to an increase in current assets. There will be no other effect of the sale of office equipment since it is a fixed asset. As such, current asset will be=2,00,000 +8,000 (Cash) 2,08,000 =
Current ratio= 208000/100000= 2.08: 1
So, the Current Ratio is improved.