The correct answer is: B. Rs. 1,00,000
Current ratio is a measure of a company’s liquidity. It is calculated by dividing current assets by current liabilities. A current ratio of 2 : 1 means that the company has 2 rupees of current assets for every 1 rupee of current liabilities.
Working capital is the difference between current assets and current liabilities. It is a measure of a company’s ability to meet its short-term obligations.
Given that the current ratio is 2 : 1 and working capital is Rs. 60,000, we can calculate the current assets as follows:
Current assets = Working capital / Current ratio
= Rs. 60,000 / 2
= Rs. 1,00,000
Option A is incorrect because it is the value of working capital, not current assets.
Option C is incorrect because it is twice the value of current assets.
Option D is incorrect because it is three times the value of current assets.