Read the information carefully and answer the questions.
| Particulars | Amount (₹) |
| Inventories | 50,000 |
| Trade Receivables | 50,000 |
| Advance Tax | 4,000 |
| Cash and Cash Equivalents | 30,000 |
| Trade Payables | 1,00,000 |
| Bank overdraft | 4,000 |
Quick Assets of the firm are:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 80,000
Quick assets are the current assets that can be turned into cash quickly. Inventories must first be sold, and advance tax will never come back as cash in the normal course, so both are taken out of current assets.
Current Assets = Rs. 1,34,000
Less: Inventories = Rs. 50,000
Less: Advance Tax = Rs. 4,000
Quick Assets = Rs. 1,34,000 − Rs. 54,000 = Rs. 80,000
The same figure comes from adding the two liquid items directly: Trade Receivables Rs. 50,000 + Cash and Cash Equivalents Rs. 30,000 = Rs. 80,000. Removing only the inventories gives Rs. 84,000, which wrongly keeps advance tax among the quick assets.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
|
