Explanation:

- Current Ratio: It is a measure of a company's ability to pay its short-term obligations with its current assets. A current ratio of 9:4 indicates for every Rs9 in current assets, there are Rs4 in current liabilities.

- Current Liabilities: Given as Rs1,20,000.

- Current Assets: Can be calculated by multiplying the current liabilities with the current ratio (9/4).

- Current Assets Calculation: Rs1,20,000 * (9/4) = Rs2,70,000.

- Liquid Assets: Current assets excluding inventory (Rs2,70,000 - Rs30,000) = Rs2,40,000.

- Liquid Ratio: It is the ratio of liquid assets to current liabilities: Rs2,40,000 / Rs1,20,000 = 2:1.

-?? Option 1: 1:1 – Incorrect.

-?? Option 2: 1.5:1 – Incorrect.

- Option 3: 2:1 – Correct.

-?? Option 4: 1.6:1 – Incorrect.

Option 3: 2:1 is the correct liquid ratio. .