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Calculate the total current assets of XYZ Ltd. on 31 March 2026. The current assets are: cash ₹90,000; bank balance ₹120,000; inventories ₹260,000; trade receivables ₹300,000; prepaid insurance ₹20,000; short‑term loan receivable ₹15,000.

easy 2 marks Class 12 · Accountancy · Financial Statements of a Company
Answer
₹805,000

The correct answer is ₹805,000 — Add short‑term loan receivable:

Step-by-step solution

  1. Add all current asset components:
  2. Add inventories:
  3. Add trade receivables:
  4. Add prepaid insurance:
  5. Add short‑term loan receivable:
Common mistake: Forgetting to include prepaid insurance

Concept tested: Current asset aggregation

Published · How this solution was prepared and checked

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