Simrit Ltd. has a current ratio of 3.5:1 and quick ratio of 2:1. If excess of current assets over quick assets as represented by inventories is Rs. 24,000, What will be the current assets in this case?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 56,000
Current assets and quick assets differ only by inventories, and both ratios are measured against the same current liabilities. So the gap between the two ratios is the inventories.
Let current liabilities = x
Current assets = 3.5x
Quick assets = 2x
Inventories = 3.5x − 2x = 1.5x
1.5x = Rs. 24,000, so x = Rs. 16,000
Current assets = 3.5 × Rs. 16,000 = Rs. 56,000
Shortcut: current assets and inventories stand in the ratio 3.5 : 1.5, so current assets = Rs. 24,000 × 3.5/1.5 = Rs. 56,000.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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