X Ltd. has a Current Ratio of 3.5:1 and a Quick Ratio of 2: 1. If the excess of current assets over quick assets represented by inventories is ₹24,000. Calculate current liabilities.

₹16,000

The correct answer is option 1- ₹16,000.

Current ratio = Current assets / Current liabilities
                     = 3.5/1
Quick ratio =   Quick assets / Current liabilities 
                  = 2/1

Let Us assume assets as x
Current assets - Quick assets = Inventories
3.5x - 2x = 24,000
1.5x = 24,000
     x = 24,000 X 10/15
        = 16,000
So current assets = 16,000 X 3.5
                            = ₹56,000

Current ratio = Current assets / Current liabilities
                     = 3.5/1
3.5/1 = 56,000/ CL
CL = 56,000/3.5
     = 16,000

Thus, current liabilities are 16,000.