The correct answer is A. Rs. 5,04,000.
To calculate the value of fixed assets, we can use the following formula:
Fixed Assets = Current Assets * Proprietary Ratio / Current Ratio
Proprietary Ratio is the ratio of shareholders’ equity to total assets. It is a measure of the extent to which a company is financed by its owners. A higher proprietary ratio indicates that a company is more financially stable, as it has a lower level of debt.
Current Ratio is the ratio of current assets to current liabilities. It is a measure of a company’s ability to meet its short-term obligations. A higher current ratio indicates that a company is more financially stable, as it has a greater ability to meet its short-term obligations.
In this case, we are given the following information:
Share capital = Rs. 7,20,000
Working capital = Rs. 2,52,000
Current Ratio = 2.5
Proprietary Ratio = 0.7
We can use this information to calculate the value of fixed assets as follows:
Fixed Assets = Current Assets * Proprietary Ratio / Current Ratio
= Rs. 2,52,000 * 0.7 / 2.5
= Rs. 5,04,000
Therefore, the value of fixed assets is Rs. 5,04,000.
Option B is incorrect because it is the value of working capital. Option C is incorrect because it is the value of shareholders’ equity. Option D is incorrect because it is the value of current assets.