Q.5 . The current liabilities of Mohit Ltd are Rs. 150000 and its current ratio is 3:1 and liquid ratio is
1:1. Calculate the value of current assets, liquid assets and stock of Mohit ltd.
To calculate the value of current assets, liquid assets, and stock of Mohit Ltd, we need to use the given information and formulas.
1. First, let's find the value of current assets using the current ratio.
Current Ratio = Current Assets / Current Liabilities
Given: Current Ratio = 3:1 and Current Liabilities = Rs. 150,000
We can rewrite the current ratio as a fraction:
3/1 = Current Assets / 150,000
Cross-multiplying:
Current Assets = (3/1) * 150,000
Current Assets = 450,000
So, the value of current assets for Mohit Ltd is Rs. 450,000.
2. Next, let's find the value of liquid assets using the liquid ratio.
Liquid Ratio = Liquid Assets / Current Liabilities
Given: Liquid Ratio = 1:1 and Current Liabilities = Rs. 150,000
We can rewrite the liquid ratio as a fraction:
1/1 = Liquid Assets / 150,000
Cross-multiplying:
Liquid Assets = (1/1) * 150,000
Liquid Assets = 150,000
So, the value of liquid assets for Mohit Ltd is Rs. 150,000.
3. Finally, let's find the value of stock.
Stock = Current Assets - Liquid Assets
Stock = 450,000 - 150,000
Stock = 300,000
So, the value of stock for Mohit Ltd is Rs. 300,000.