CUET UG 2025 — Accountancy Financial Statements

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

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Identifying Current Assets:

Inventories + Trade receivables + Advance tax + Cash and cash equivalents

= 60,000 + 60,000 + 4,000 + 50,000 = 1,74,000

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Identifying Current Liabilities:

Trade payables + Bank Overdraft

= 1,30,000 + 4,000 = 1,34,000

Note: Bank Overdraft is a current liability as it is repayable on demand.

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Calculating Current Ratio:

Current Ratio = $\frac{1,74,000}{1,34,000}$1,34,0001,74,000​ = 1.30:1

Answer: Option 1 (1.30:1)