question_answer

You are required to answer the following questions 31 to 36 : Following information is provided by Gagan Ltd. on 31st March 2021

Particulars		Note No.	2021
I.	Equity and Liabilities
1.	Shareholders' Funds
	(a) Share Capital		25,00,000
	(b) Reserves and Surplus	1	10,00,000
2.	Non-current Liabilities
	Long term Borrowings	2	17,50,000
3.	Current Liabilities
	(a) Short-term Borrowings	3	7,50,000
	(b) Other Current Liabilities	4	3,50,000
	Total		63,50,000
II.	ASSETS
1.	Non-current Assets
	Property, Plant & Equipment (Fixed Assets):
	(i)  Tangible Assets		45,15,000
	(ii) Intangible Assets		1,00,000
	Non-Current Investment	5	5,00,000
2.	Current Assets:
	(a) Current Investment		2,50,000
	(b) Inventories	6	5,35,000
	(c) Cash and Cash Equivalents		4,50,000
	Total		63,50,000

Notes to Accounts

Particulars		2021
1.	Reserves and Surplus
	Surplus i.e. Balance in Statement of P/L	10,00,000
	Long-term Borrowings
	12% Debentures	17,50,000
3.	Short-term Borrowings
	Cash Credit	7,50,000
4.	Other Current Liabilities
	12% Debentures: Current Maturities of Long-term Debts	3,50,000
5.	Non-current Investment
	Trade Investment	5,00,000
6.	Inventories
	Stock	4,00,000
	Loose Tools	35,000
	Stores and spares	1,00,000

Current Ratio of the firm will be:

A) 1:1

B) 2.25:1

C) 2:5:1

D) 2:1