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The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.
  • a)
    Rs. 2,00,000
  • b)
    Rs. 1,00,000
  • c)
    Rs. 3,00,000
  • d)
    Rs. 4,00,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The Fixed Assets of a company is double of the current assets and half...
Given:
- Fixed Assets = 2 * Current Assets
- Fixed Assets = 0.5 * Capital
- Current Assets = Rs. 3,00,000
- Investments = Rs. 4,00,000

To find:
- Current Liabilities

Solution:

First, we need to find the value of Fixed Assets and Capital.

Since Fixed Assets is double the value of Current Assets,
Fixed Assets = 2 * Current Assets
Fixed Assets = 2 * Rs. 3,00,000
Fixed Assets = Rs. 6,00,000

Since Fixed Assets is half the value of Capital,
Capital = 2 * Fixed Assets
Capital = 2 * Rs. 6,00,000
Capital = Rs. 12,00,000

Now, let's find the value of Current Liabilities.

Total Assets = Current Assets + Fixed Assets + Investments
Total Assets = Rs. 3,00,000 + Rs. 6,00,000 + Rs. 4,00,000
Total Assets = Rs. 13,00,000

Total Liabilities = Capital + Current Liabilities
Total Liabilities = Rs. 12,00,000 + Current Liabilities

Since Total Assets = Total Liabilities,
Rs. 13,00,000 = Rs. 12,00,000 + Current Liabilities

Simplifying the equation,
Current Liabilities = Rs. 13,00,000 - Rs. 12,00,000
Current Liabilities = Rs. 1,00,000

Therefore, the current liabilities are Rs. 1,00,000. (Option B)
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The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.a)Rs. 2,00,000b)Rs. 1,00,000c)Rs. 3,00,000d)Rs. 4,00,000Correct answer is option 'B'. Can you explain this answer?
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The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.a)Rs. 2,00,000b)Rs. 1,00,000c)Rs. 3,00,000d)Rs. 4,00,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.a)Rs. 2,00,000b)Rs. 1,00,000c)Rs. 3,00,000d)Rs. 4,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Fixed Assets of a company is double of the current assets and half of capital. If the current assets are Rs.3,00,000 and investments Rs.4,oo,ooo, calculate the current liabilities assuming that there are no other items in the balance sheet.a)Rs. 2,00,000b)Rs. 1,00,000c)Rs. 3,00,000d)Rs. 4,00,000Correct answer is option 'B'. Can you explain this answer?.
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