The Current Ratio of a Company is 2:1. State whether the current ratio
(i) improve
(ii) reduce 
(iii) not alter
from the transactions given below.
Purchasing goods on credit.

Reduce

Purchasing Goods on Credit:
Suppose, current assets are 2,00,000 and Current Liability are 100000 and goods for 25,000 is purchased on credit.
Current liability=  1,00,000+ 25,000 (Trade Payables) =1,25,000 
Current asset = 200000+25000(inventory)= ₹225000
Current ratio= 225000/125000= 1.8:1
So, the current ratio is reduced.