17 :- From the following information, calculate Liquid Ratio:
Solution :-
Liquid Assets = Current Assets – Inventories – Prepaid Expenses
= 4,00,000 – 1,00,000 – 20,000
= Rs 2,80,000
Current Liabilities = Rs 1,40,000
Liquid Ratio = Liquid Assets/Current Liabilities
= 2,80,000/1,40,000
= 2 : 1