36 :- Following is the Balance Sheet of Crescent Chemical Works Limited as at 31st March, 2025 :
Compute Current Ratio and Liquid Ratio
Solution :-
Current Assets = Inventories + Debtors + Cash and Cash Equivalents
= 50,000 + 30,000 + 20,000
= Rs 1,00,000
Current Liabilities = Short – term Borrowings + Trade Payable + Short – term Provisions
= 3,000 + 13,000 + 4,000
= Rs 20,000
Current Ratio = Current Assets/Current Liabilities
= 1,00,000/20,000
= 5 : 1
Liquid Assets = Current Assets – Inventories
= 1,00,000 – 50,000
= Rs 50,000
Liquid Ratio = Liquid Assets/Current Liabilities
= 50,000/20,000
= 2.5 : 1