Question

Answer the question using the following information:

Sales: Rs. 200,000
Debtors: Rs. 25,000
Land & Building: Rs. 100,000
Salary: Rs. 10,000
Bank loans: Rs. 60,000
Discount received: Rs. 20,000
Machinery: Rs. 35,000
Furniture: Rs. 15,000
Rent income: Rs. 30,000
Purchase: Rs. 50,000
Stock: Rs. 150,000
Creditors: Rs. 40,000
Cash: Rs. 70,000
What is the value of current assets as of 31.03.2019?
a) Rs. 145,000
b) Rs. 310,000
c) Rs. 105,000
d) Rs. 345,000

Answer 1

Using the provided figures, the total value of current assets is Rs. 245,000.

Step-by-step explanation:

The value of current assets is calculated by adding together cash, debtors, stock, and any other asset that is expected to be converted into cash within a year. Using the provided information, we find that the current assets are: Cash Rs. 70,000, Debtors Rs. 25,000, and Stock Rs. 150,000. The total current assets equal Rs. 245,000.