The current ratio of a firm is 2:1 and quick ratio is 1:1. If liabilities are Rs.1,00,000 then find the value of working capital.

Rs 1,00,000

The correct answer is Option (3) → Rs 1,00,000 

Current Ratio= Current Assets / Current Liabilities

2 = Current Assets / 1,00,000

Current Assets = 2,00,000

Working Capital=Current Assets−Current Liabilities

                         =2,00,000−1,00,000 =1,00,000​​