From the following information compute current Ratio:

Explanation

Current Ratio =`("Current Assets")/("Current Liabilities")=(Rs 200000)/(Rs 100000)=2:1`
Current Assets =Trade Receivables (sundry Debtors)+Prepaid Expenses
+Cash and cash Equivalents +Short-term Investments+Inventories
=Rs100000+Rs10000+Rs 30000+Rs20000+Rs40000=200000.
Current Liabilities=Trade Payables (Bills Payable+Sundry Creditors)+Expaneses Payable
=Rs 20000+Rs 40,000+Rs 40,000=Rs100000.