Repayment of a Current Liability: Suppose, the current liability amounts to 2,00,000 and the current asset ₹100000. And current liability of ₹50000 is repaid. *So, after ₹50,000 is repaid, the revised current ratio will be : Current asset= 2,00,000-50,000 (Cash)= ₹150000 Current liability= 1,00,000-50,000 (Liability)= ₹50000 Current Ratio = 150000/50000 = 3:1 |