X Ltd., has a current ratio of 3:1 and quick ratio of 2:1. If excess of current assets over quick assets, represented by inventories is ₹5,000, calculate current assets and quick assets.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 15,000; Rs. 10,000
Current assets minus quick assets is the inventory. Express both ratios in terms of the same current liabilities and the difference gives the value of one part.
Let current liabilities = x
Current assets = 3x and quick assets = 2x
Inventory = 3x − 2x = x = Rs. 5,000
Current assets = 3 × Rs. 5,000 = Rs. 15,000
Quick assets = 2 × Rs. 5,000 = Rs. 10,000
Check: Rs. 15,000 − Rs. 10,000 = Rs. 5,000, which is the inventory given.
NCERT (2026-27 edition):
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