Current Liabilities are obligations that need to be settled within one year or the operating cycle of the business.
From the given information, identifying the current liabilities:
Current Liabilities:
- Trade Payables = Rs. 1,00,000
- Bank Overdraft = Rs. 4,000
Calculation:
Total Current Liabilities = Trade Payables + Bank Overdraft
Total Current Liabilities = Rs. 1,00,000 + Rs. 4,000 = Rs. 1,04,000
Note: The other items listed are Current Assets, not liabilities:
- Inventories, Trade Receivables, Advance Tax, and Cash and Cash Equivalents are all assets owned by the business
Bank overdraft is treated as a current liability because it represents money owed to the bank that needs to be repaid on demand.
Answer: Option 3 - Rs. 1,04,000