{"id":50553,"date":"2024-04-15T23:11:58","date_gmt":"2024-04-15T23:11:58","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50553"},"modified":"2024-04-15T23:11:58","modified_gmt":"2024-04-15T23:11:58","slug":"given-cash-in-hand-rs-10000-debtor-rs-20000-bills-receivable-rs-5000-plant-rs-5000-creditor-rs-15000-net-working-capital-will-be","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/given-cash-in-hand-rs-10000-debtor-rs-20000-bills-receivable-rs-5000-plant-rs-5000-creditor-rs-15000-net-working-capital-will-be\/","title":{"rendered":"Given: Cash in hand: Rs. 10,000 Debtor: Rs. 20,000 Bills receivable: Rs. 5,000 Plant : Rs. 5,000 Creditor: Rs. 15,000 Net Working Capital will be"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 25,000&#8243; option2=&#8221;Rs. 20,000&#8243; option3=&#8221;Rs. 40,000&#8243; option4=&#8221;None of these&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. Rs. 25,000<\/p>\n<p>Net working capital is a measure of a company&#8217;s liquidity and efficiency in managing its short-term assets and liabilities. It is calculated by subtracting current liabilities from current assets.<\/p>\n<p>In this case, the current assets are cash in hand, debtors, and bills receivable. The current liabilities are creditors.<\/p>\n<p>Therefore, the net working capital is:<\/p>\n<p>Net working capital = Current assets &#8211; Current liabilities<br \/>\n= Rs. 10,000 + Rs. 20,000 + Rs. 5,000 &#8211; Rs. 15,000<br \/>\n= Rs. 25,000<\/p>\n<p>Option B is incorrect because it is the value of debtors.<\/p>\n<p>Option C is incorrect because it is the sum of cash in hand, debtors, and bills receivable.<\/p>\n<p>Option D is incorrect because it is not a valid option.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Rs. 25,000&#8243; option2=&#8221;Rs. 20,000&#8243; option3=&#8221;Rs. 40,000&#8243; option4=&#8221;None of these&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-50553","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Given: Cash in hand: Rs. 10,000 Debtor: Rs. 20,000 Bills receivable: Rs. 5,000 Plant : Rs. 5,000 Creditor: Rs. 15,000 Net Working Capital will be<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/given-cash-in-hand-rs-10000-debtor-rs-20000-bills-receivable-rs-5000-plant-rs-5000-creditor-rs-15000-net-working-capital-will-be\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Given: Cash in hand: Rs. 10,000 Debtor: Rs. 20,000 Bills receivable: Rs. 5,000 Plant : Rs. 5,000 Creditor: Rs. 15,000 Net Working Capital will be\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Rs. 25,000&#8243; 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