| Particulars | Amount (Rs.) | Particulars | Amount (Rs.) |
| Current Assets | 2,00,000 | Trade Receivables | 1,10,000 |
| Inventories | 50,000 | Current Liabilities | 70,000 |
| Prepaid Expenses | 10,000 |
SOLUTION
Quick Assets or Liquid Assets = Currents Assets – Inventories – Pre-paid Expenses
= 2,00,000 – 50,000 – 10,000
= Rs. 1,40,000
Current Liabilities = Rs. 70,000
Current ratio = liquid assets or quick assets / Current liabilities
= 1,40,000 / 70,000
= 2: 1