(a) The ratio of current Assets (Rs. 600000) to current Liabilities ( Rs.400000) is 1.5:1.The Accountant of the firm is interested in maintaining acurrent Ratio be 2:1 by paying off a part of Liabilities. Calculate the amount ofCurrent Liabilities that should be paid. (b) The Current Assets to Current Liability of a firm is Rs. 800000 to Rs.300000. The Accountant of the firm wishes that current Ratio be 2:1 byacquiring current assets on credit. Calculate the amount of current Assets.

(a) The ratio of current Assets (Rs. 600000) to current Liabilities ( Rs.400000) is 1.5:1.The Accountant of the firm is interested in maintaining acurrent Ratio be 2:1 by paying off a part of Liabilities. Calculate the amount ofCurrent Liabilities that should be paid. (b) The Current Assets to Current Liability of a firm is Rs. 800000 to Rs.300000. The Accountant of the firm wishes that current Ratio be 2:1 byacquiring current assets on credit. Calculate the amount of current Assets.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 8Q

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