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.
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 find the value of current assets, liquid assets, and stock of Mohit Ltd, we need to use the given information and solve a system of equations.
Let's assume the current assets of Mohit Ltd are represented by CA, the liquid assets are LA, and the stock is represented by S.
1) From the current ratio, we know that the current assets are 3 times the current liabilities. So we have the equation:
CA = 3 * Current Liabilities
Substituting the given value of current liabilities (Rs. 150,000), we can calculate the value of current assets:
CA = 3 * 150,000
CA = Rs. 450,000
2) From the liquid ratio, we know that the liquid assets are equal to the current liabilities. So we have the equation:
LA = Current Liabilities
Substituting the given value of current liabilities (Rs. 150,000), we can calculate the value of liquid assets:
LA = Rs. 150,000
3) To calculate the stock, we can use the equation:
Stock = Current Assets - Liquid Assets
Substituting the calculated values of current assets (Rs. 450,000) and liquid assets (Rs. 150,000), we can calculate the value of the stock:
Stock = 450,000 - 150,000
Stock = Rs. 300,000
Therefore, the value of current assets is Rs. 450,000, liquid assets is Rs. 150,000, and the stock is Rs. 300,000 for Mohit Ltd.