Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

If, Total assets = ₹3,00,000

Non-current liabilities = ₹80,000

Shareholders fund = ₹2,00,000

Non-current assets :

Fixed assets = ₹1,60,000

Non-current investments = ₹1,00,000

Then, Current Ratio is:

Options:

2:1

1:1

1:2

3:2

Correct Answer:

2:1

Explanation:

The correct answer is option  1- 2:1.

Total assets = ₹3,00,000
Non-current liabilities = ₹80,000
Shareholders fund = ₹2,00,000


Non-current assets = Fixed assets + Non-current investments
                                
= ₹1,60,000 + ₹1,00,000
                               = 2,60,000

Current assets = Total assets - Non-current assets
                        = 3,00,000 - 2,60,000
                        = 40,000

Current liabilities = Total assets - Shareholders fund - Non-current liabilities
                             = 3,00,000 - 2,00,000 - 80,000
                             = 20,000

CURRENT RATIO = Current assets/Current liabilities
                            = 40,000/20,000
                            = 2:1