A firm's current liabilities comprise bank credit and other liabilities in the ratio of 2 : 1. The current liabilities of the firm are - 3,00,000…

CA Intermediate · Financial Management and Strategic Management · RTP · May 2026
A firm's current liabilities comprise bank credit and other liabilities in the ratio of 2 : 1. The current liabilities of the firm are - 3,00,000 and the current ratio is also 2 : 1. The quick ratio is 1 : 1. Thus, the amount of bank credit and inventory of the firm would be :
(A) ₹ 3,00,000 and - 1,00,000
(B) ₹ 2,00,000 and - 3,00,000
(C) ₹ 3,00,000 and - 2,00,000
(D) ₹ 1,00,000 and - 3,00,000

Suggested Answer and Working Notes:

Correct Answer: Option (B)

₹ 2,00,000 and - 3,00,000

Topics: Part-A: Financial Management

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