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 |
Amount of Total Current Assets are:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 1,34,000
Current assets are the assets the business expects to turn into cash, use up or sell within its operating cycle. Every item in the list that is held for that short period is added; items that are owed by the firm are left out.
Current assets in the given data:
Inventories = Rs. 50,000
Trade Receivables = Rs. 50,000
Advance Tax = Rs. 4,000
Cash and Cash Equivalents = Rs. 30,000
Total Current Assets = Rs. 1,34,000
Trade Payables and Bank Overdraft are amounts the firm owes, so they are current liabilities and stay out of this total. Advance tax is a current asset even though it is not cash; it is left out only later, when quick assets are worked out.
NCERT (2026-27 edition):
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