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Shrikant Govinda's bhise

· started a discussion

· 1 Months ago

Explaination (Question: 187398.0 )

Kindly Give us explaining briefly.

Question:
Debt Equity Ratio is 3:1,the amount of total assets Rs.20 lac,current ratio is 1.5:1 and owned funds Rs.3 lac.What is the amount of current asset? 
Options:
A) Rs.5 lac 
B) Rs.3 lac 
C) Rs.12 lac 
D) none of the above. 
E) Can't be determined
Solution:

Ans (c)

Debt equity ratios is 3: 1 means 9 lac : 3 lac. Asset = Current Liabilities + Debt + Equity  i.e


20 Lac = Current Liabilities + 9 Lac + 3 Lac 


Current Liabilities = 20 Lac - 12 Lac = 8 Lac


Current Ratio is 1.5 : 1 i.e = 1.5 x 8 


Current Ratio  = 12 Lac

Knowledge Expert

· commented

· 1 Months ago

Debt equity ratios is 3: 1 means 9 lac : 3 lac. Asset = Current Liabilities + Debt + Equity i.e

20 Lac = Current Liabilities + 9 Lac + 3 Lac

Current Liabilities = 20 Lac - 12 Lac = 8 Lac

Current Ratio is 1.5 : 1 i.e = 1.5 x 8

Current Ratio = 12 Lac
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