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    Question

    A company’s Balance Sheet includes: Equity ₹25 lakh,

    10% Debentures ₹10 lakh, Land ₹20 lakh, Plant & Machinery ₹10 lakh, Inventory ₹5 lakh, Trade Receivables ₹5 lakh, and Cash ₹10 lakh. Based on this, calculate the Current Ratio.
    A 1.5 Correct Answer Incorrect Answer
    B 2.0 Correct Answer Incorrect Answer
    C 2.5 Correct Answer Incorrect Answer
    D 1.8 Correct Answer Incorrect Answer
    E 1.3 Correct Answer Incorrect Answer

    Solution

    Current Assets = Inventory + Receivables + Cash = ₹20 lakh; Current Liabilities = ₹15 lakh; CR = 20/15 = 1.3

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