The balance sheet of a firm has shown total asset of Rs. 35 lacs. If the current ratio 2:1 and the l

The balance sheet of a firm has shown total asset of Rs. 35 lacs. If the current ratio 2:1 and the long term uses are Rs. 20 lacs, What is the amount of current liabilities ? a. Rs. 6 lacs b. Rs. 7.5 lacs c. Rs. 9 lacs d. Rs. 10.5 lacs Ans - b Solution: Total Assets - long term asset = current Assets Hence, current assets = 35 - 20 = 15 lac Current ratio 2:1 Current ratio = Current Assets / Current Liabilities 2:1 = 15 / Current liabilities Current liabilities = 15/2 = 7.5 lac