Rs. 25,000
Rs. 20,000
Rs. 40,000
None of these
Answer is Right!
Answer is Wrong!
The correct answer is: A. Rs. 25,000
Net working capital is a measure of a company’s liquidity and efficiency in managing its short-term assets and liabilities. It is calculated by subtracting current liabilities from current assets.
In this case, the current assets are cash in hand, debtors, and bills receivable. The current liabilities are creditors.
Therefore, the net working capital is:
Net working capital = Current assets – Current liabilities
= Rs. 10,000 + Rs. 20,000 + Rs. 5,000 – Rs. 15,000
= Rs. 25,000
Option B is incorrect because it is the value of debtors.
Option C is incorrect because it is the sum of cash in hand, debtors, and bills receivable.
Option D is incorrect because it is not a valid option.