Question : The ratio of Current Assets (Rs.16,00,000) to Current Liabilities (Rs.10,00,000) is 1.6: 1. The accountant of the firm is interested in maintaining a Current Ratio of 2: 1, by paying off a part of the Current Liabilities. The amount of the Current Liabilities will be that should be paid, so that the Current Ratio at the level 2: 1 may be maintained.

Option 1: Rs 4,00,000

Option 2: Rs 5,00,000

Option 3: Rs 8,00,000

Option 4: Rs 10,00,000