The current ratio of a firm is 2:1 and the quick ratio is 1:1 . If liabilities are Rs. 1,00,000 , find the value of working capital. - Accountancy MCQ CUET Accountancy 2025 27 May Shift 2 2026 | ExamTest.live

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The current ratio of a firm is 2 : 1 and the quick ratio is 1 : 1 . If liabilities are Rs. 1, 00, 000, find the value of working capital.

Solution & Step-by-step Explanation

Step 1: Understand the given ratios. Current Ratio = \frac{Current Assets (CA)}{Current Liabilities (CL)} = \frac{2}{1} Given that CL = Rs. 1, 00, 000 .Step 2: Calculate Current Assets (CA). \frac{CA}{1 , 00 , 000} = 2 ⟹ CA = 2 \times 1, 00, 000 = Rs. 2, 00, 000 Step 3: Calculate Working Capital. Working Capital = Current Assets - Current Liabilities Working Capital = 2, 00, 000 - 1, 00, 000 = Rs. 1, 00, 000

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The current ratio of a firm is 2 : 1 and the quick ratio is 1 : 1 . If liabilities are Rs. 1, 00, 000, find the value of working capital.

Rs. 3,00,000

Rs. 2,00,000

Rs. 1,00,000

Rs. 50,000

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