A Company's Current Assets are Rs8,00,000 and its current liabilities are Rs4,00,000. Subsequently, it purchased goods for Rs1,00,000 on credit. Current ratio will be:

1.8 : 1

Current Assets are Rs8,00,000 and its current liabilities are Rs4,00,000. On purchase of goods for Rs1,00,000 on credit, Current assets & current liabilities will be increased by the same amount. As stock is increased by the amount of ₹100000 and creditors also increased by ₹100000.
New Current Assets= 800000 + 100000 = 9,00,000
New Current Liabilities=400000 + 100000 =  5,00,000
Current Ratio = 900000/500000
                      = 1.8:1