**SOLUTION**

**Current ratio = Current assets / Current liabilities = 1.5: 1The company is interested in maintaining the Current Ratio of 2: 1 by paying off the liability.**

**Let the liability paid-off by the company = x∴ New Current Assets = 3,00,000 − xNew Current Liabilities = 2,00,000 − xNew Current ratio = (3,00,000 – x )/ (2,00,000 – x) = 2: 1Or 3,00,000 – 3x = 4,00,000 – 2xOr 1,00,000**

**Therefore, liability of Rs. 1,00,000 need to be paid-off by the company in order to maintain the Current Ratio of 2: 1.**