Sir, how to calculate current ratio?

Current Ratio = Current Assets  / Current Liabilities

1. Either you would have mixed up some current assets/liabilities with long term/fixed assets/ or LT liabilites/capital.

2. Or answer may not be correctly printed!!

sir in my balance this item are availiable - capital 1311839,secure loan- 429812 current liabilites expense- 36000

 Asset, total assets - 530622, security deposit -10000,

  current assets - 2437029(incl cash in  hand,bank,closing stock.)

         Please guide what is the current ratio.

Both sides do not tally, something missing on liability side. OR current asset could be 1237029.

Yes , sir you r right, secured loan is 1629812. sir now what will be the current ration of this.

Assets which are likely to be collectible in the short term (usually within 12 months) are considered a "current" asset, while anything owed by the company in the same time frame is considered as a current liability.

As nothing specified about the secured loan, we have to take current assets and liabilities as given in the figure. Thus the ratio goes to 67.7, which is practically not feasible!!!

SIR,

I M giving the list of Fixed assets - 530622 ,current asset closing stock - raw material - 1060000,finished good - 1060000, sundry debtors & receivable - 100000 , cash and bank balance - 217029.

current liabilities- expense payable -36000, secured loan - term loan-429812 and cc loan-1200000, capital - 1311839

Yes, now its practically acceptable, 1.9717.

Sir , please tell how have you calculate it.

 but sir in example its shows 1.85 . why sir?

Sir, please tell how you calculate it?

But sir in my example its shows 1.85, why sir?

Sir,

 please tell how have you calculated?

But sir in my example it is 1.85, how it came.

From above try to find out the answer.

sIR,

 i FOLLOW YOUR PROCESS but my ration is not the same as your came.Sir can you show how have you calculated.

Hint: Cash credit is a type of short term loan provided to companies to fulfill their working capital requirement. 

A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 20-25 years in some cases.

Sir, still from your hint no yet successes to find the result

My total current asset is = RS 2437029

And current Liabilities = RS 36000

Now 2437029/36000=67.69 which is not possible.

Sir please tell how have you find out.