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<p>Long Term Liabilities Rs.50,000, net profit during the year Rs.15,000 and the amount of total liabilities is Rs175,000. What will be the amount of Current Liabilities? </p> <p>A) Rs.20,000 </p> <p>B) Rs.150,000 </p> <p>C) Rs.10,000 </p> <p>D) Rs.25,000</p>
according to the givens125000
C
RS.125,000
No option matches with the right answer
ANSWER C
10000 RS
Assets = equity + amount of total liabilities
Amount of total liabilities = long term liabilities + short term liabilities (current liabilities)
C) Rs.10,000
Rs.10000/-
C
Total liabilities = capital + long-term liabilities + Current Liabilities + profits
Total liabilities - capital - long-term liabilities -alarabah = Current Liabilities
- =10000
Given:
ABC capital = $100,000
LT liability = $50,000
Total liability = $175,000
Net income = $15,000
Required: Current liability?
Current liability = Total liability - Long term liability
Current liability = $175,000 - $50,000
So, as you can see from the above calculation, none of the multiple choices given above can stand as an answer for total amount of the current liability. In other words, the multiple choices provided to answer this question is incomplete.
To provide an answer for this question, we need to choose one of the following two alternatives:
(1) An additional choice to be numbered as (choice E) is recommended to be provided either as:
(2) Another alternative answer may also be to use both of the two options given in the first alternative if and only if they are provided with different choices as:
