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Debt Equity ratio is 3:1 , the amount of total assets Rs . 20 lac , current ratio is 1.5:1 and owned funds Rs. 3 lac . what is the amount of current asset?

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Question added by Suneetha R C
Date Posted: 2016/03/29
Awais Ali
by Awais Ali , Sr. Accounatnt , Gulf Tech Industrial Services

Amoutnt of Currnt asset is 12 LAC

Muhammad Hamid Waheed
by Muhammad Hamid Waheed , Senior Managing Consultant BFS Digital Delivery , Systems Limited

Debt equity ratios is 3: 1 means 9 lac : 3 lac. Asset = Current Liabilities + Debt + Equity  i.e

20 Lac = Current Liabilities + 9 Lac + 3 Lac 

Current Liabilities = 20 Lac - 12 Lac = 8 Lac

Current Ratio is 1.5 : 1 i.e = 1.5 x 8 

Current Ratio  = 12 Lac 

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