CUET UG 2025 — Accountancy Computerised Accounting

Given information:

• Current Ratio = 2:1
• Quick Ratio = 1:1
• Current Liabilities = Rs 1,00,000

Using the Current Ratio formula:

$$\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}$$Current Ratio=Current LiabilitiesCurrent Assets​

$$\frac{2}{1} = \frac{\text{Current Assets}}{1,00,000}$$12​=1,00,000Current Assets​

Current Assets = 2 × 1,00,000 = Rs 2,00,000

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Calculating Working Capital:

$$\text{Working Capital} = \text{Current Assets} - \text{Current Liabilities}$$Working Capital=Current Assets−Current Liabilities

Working Capital = 2,00,000 - 1,00,000 = Rs 1,00,000

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The given Quick Ratio of 1:1 confirms this calculation. With Quick Assets equal to Current Liabilities (Rs 1,00,000), the difference between Current Assets (Rs 2,00,000) and Quick Assets (Rs 1,00,000) represents Inventory of Rs 1,00,000, which is a reasonable composition of current assets.

Answer: Rs 1,00,000 (Option 3)