Cash = Rs. 6,00,000 Debtors = Rs. 9,00,000 Inventories = Rs. 20,00,000 Current liabilities = Rs.

Cash = Rs. 6,00,000 Debtors = Rs. 9,00,000 Inventories = Rs. 20,00,000 Current liabilities = Rs. 30,00,000 Total current assets = Rs. 40,00,000 The quick ratio = ? a. 1:1 b. 1.5:1 c. 1:1.5 d. 2:1 Ans - c Solution : Quick ratio = Quick asset / CL Here Quick asset = CA-Inventory So, Quick asset = 4000000 - 2000000 = 2000000 CL = 3000000 Hence Quick Ratio = 2000000/3000000 = 1:1.5

 

Debtors and cash in hand is also a part of current asset