| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| Total Debt | 6,00,000 | Long-term Borrowings | 2,00,000 |
| Total Assets | 8,00,000 | Long-term Provisions | 2,00,000 |
| Fixed Assets (Tangible) | 3,00,000 | Inventories | 95,000 |
| Non-current Investment | 50,000 | Prepaid Expenses | 5,000 |
| Long-term Loans and Advances | 50,000 |
SOLUTION
(i) Current ratio
Current Assets = Total Assets – Fixed Assets – Non – Current Investment Long term Loans and Advances
= 8,00,000 – 3,00,000 – 50,000 – 50,000
= Rs. 4,00,000
Current Liabilities = Total Debt - Non-Current Liabilities
= 6,00,000 – 2,00,000 – 2,00,000
= Rs. 2,00,000
Current Ratio = Current Assets / Current Liabilities
= 4,00,000 / 2,00,000
= 2: 1
(ii) Quick Ratio
Quick Assets = Current Assets-Stock – Prepaid Expenses
= 4,00,000 – 95,000 − 5,000
= Rs. 3,00,000
Quick Ratio = Quick Assets / Current Liabilities
= 3,00,000 / 2,00,000
= 1.5: 1