The current liabilities of mohit Ltd are Rs 150000 and it's current ratio is 3:1 and liquid ratio is 1:1. Calculate the value of current assets, liquid assets and stock of Mohit Ltd.
answer
300000
To calculate the value of current assets, liquid assets, and stock of Mohit Ltd, we need to understand the formulas for current ratio, liquid ratio, and the relationship between these ratios and the different components of current assets.
1. Current Ratio: Current ratio is calculated by dividing current assets by current liabilities. In this case, the current ratio is given as 3:1. Let's assume the value of current assets is '3x' and the value of current liabilities is 'x'. So, we have:
Current assets / Current liabilities = 3 / 1
3x / x = 3 / 1
3x = 3
x = 1
Therefore, the value of current liabilities (x) is Rs 1, which means the value of current assets is 3 times the value of current liabilities, i.e., Rs 3.
2. Liquid Ratio: Liquid ratio is calculated by dividing liquid assets by current liabilities. In this case, the liquid ratio is given as 1:1. Since the value of current liabilities is already known to be Rs 1, we can calculate the value of liquid assets:
Liquid assets / Current liabilities = 1 / 1
Liquid assets / 1 = 1 / 1
Liquid assets = 1
Therefore, the value of liquid assets is Rs 1.
3. Stock: Stock is one component of current assets. To calculate the value of stock, we need to subtract the value of liquid assets from the value of current assets:
Stock = Current assets - Liquid assets
Stock = Rs 3 - Rs 1
Stock = Rs 2
Therefore, the value of stock is Rs 2.
In summary, the value of current assets is Rs 3, the value of liquid assets is Rs 1, and the value of stock is Rs 2 for Mohit Ltd.