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    Question

    Refer the following summarized Balance Sheet of Roy Ltd. as on 31‐3‐2023:

    Additional Information: Operating expenses for the year 2023 amounted to Rs. 15,50,000. Consider 365 days in a year.

    Calculate Current ratio from the above information:

    A 2.63 Correct Answer Incorrect Answer
    B 1.95 Correct Answer Incorrect Answer
    C 1.5 Correct Answer Incorrect Answer
    D 2.5 Correct Answer Incorrect Answer

    Solution

    Current Ratio = Current Assets / Current Liabilities 10,50,000 / 4,00,000 =2.63 Current Assets =  Closing Stock2,50,000 Trade Receivables4,60,000 Bills Receivable80,000 Cash at Bank40,000 Cash in Hand50,000 Marketable securities1,50,000 Prepaid Expenses20,000 Total Current Assets:10,50,000 Current Liabilities = Trade Payables + Bank Overdraft = 1,60,000 + 2,40,000 = 4,00,000

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