(a) The ratio of current Assets (Rs. 600000) to current Liabilities ( Rs.400000) is 1.5:1.The Accountant of the firm is interested in maintaining acurrent Ratio be 2:1 by paying off a part of Liabilities. Calculate the amount ofCurrent Liabilities that should be paid. (b) The Current Assets to Current Liability of a firm is Rs. 800000 to Rs.300000. The Accountant of the firm wishes that current Ratio be 2:1 byacquiring current assets on credit. Calculate the amount of current Assets.
(a) The ratio of current Assets (Rs. 600000) to current Liabilities ( Rs.400000) is 1.5:1.The Accountant of the firm is interested in maintaining acurrent Ratio be 2:1 by paying off a part of Liabilities. Calculate the amount ofCurrent Liabilities that should be paid. (b) The Current Assets to Current Liability of a firm is Rs. 800000 to Rs.300000. The Accountant of the firm wishes that current Ratio be 2:1 byacquiring current assets on credit. Calculate the amount of current Assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) The ratio of current Assets (Rs. 600000) to current Liabilities ( Rs.
400000) is 1.5:1.The Accountant of the firm is interested in maintaining a
(b) The Current Assets to Current Liability of a firm is Rs. 800000 to Rs.
300000. The Accountant of the firm wishes that current Ratio be 2:1 by
acquiring current assets on credit. Calculate the amount of current Assets.
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