A company’s current assets at 31 March 2026 are: cash ₹85,000, bank ₹140,000, inventories ₹250,000, trade receivables ₹320,000, prepaid rent ₹18,000 and short‑term loan receivable ₹12,000. Calculate the total current assets.
Answer
₹825,000
The correct answer is ₹825,000 — Finally add short‑term loan receivable ₹12,000 to obtain total current assets ₹825,000.
Step-by-step solution
- List each current‑asset component with its amount.
- Add cash ₹85,000 and bank ₹140,000 to get ₹225,000.
- Add inventories ₹250,000 to obtain ₹475,000.
- Add trade receivables ₹320,000 giving ₹795,000.
- Add prepaid rent ₹18,000 to reach ₹813,000.
- Finally add short‑term loan receivable ₹12,000 to obtain total current assets ₹825,000.
Common mistake: Omitting the short‑term loan receivable from the total
Concept tested: Total current assets
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