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.

₹15,000; ₹10,000

The correct answer is option 1- ₹15,000; ₹10,000.

Current ratio = 3:1

Quick ratio of 2:1

Excess of current assets over quick assets is inventories = ₹5,000

Let current assets = 3
Quick assets = 2

Inventory = 3 -2
               = 1

If inventory is  1 then current assets = 3
If inventory is 5,000 then current assets = 3/1 x 5,000
                                                           = 15,000

Quick assets = Current assets - Inventory
                   = 15,000 - 5,000
                   = 10,000