Current Ratio of A ltd is 4.5 1 and Liquid Ratio is 3:1 If its Inventories are 3000000 find out its current Libilites, Current Assets and Quiock Assets.

Explanation

Let current liabilities be x
Current ratio is 4.5:1 therefore current assets =4.5x
Liquid ratio is 3:1,therefore Liquid Assets or Quick Asstes =3x
Liquid Assets =current Assets -Inventories
3x=4.5x - Rs 300000
1.5x=Rs 300000
`x=(Rs 300000)/(1.5)=Rs 200000`
therefore Current Liabilities =Rs 200000
Current Assets =Rs `200000xx4.5`=Rs 900000
Quick Assets =Cureent Assets -Inventories
=Rs 900000-Rs 300000=Rs 600000
=Rs 20000(Current Liabilities )`xx3`=Rs 600000