Question 100 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 100 Chapter 4 of +2-B

Working Capital Turnover

100. Capital Employed Rs. 12,00,000; Net Fixed Assets Rs. 8,00,000; Cost of
Goods Sold or Cost of Revenue from Operations 40,00,000; Gross Profit is 20% on Cost.
Calculate Working Capital Turnover Ratio.

The solution of Question 100 Chapter 4 of +2-B: -

Cost of Goods Sold	=	Rs. 40,00,000
Gross Profit	=	20% of Cost

 

Gross Profit	=Rs.40,00,000	+	20
			100
	=Rs. 8,00,000

 

Total Sales	=	Cost of Goods Sold + Gross Profit
	=	Rs. 40,00,000 + Rs. 8,00,000
	=	Rs. 48,00,000
Working Capital	=	Capital Employed – Fixed Assets
	=	Rs. 12,00,000 - Rs. 8,00,000
	=	Rs. 4,00,000

 

Working Capital Turnover Ratio	=	Cost of Goods Sold
		Working Capital

=	Rs. 48,00,000
	Rs. 4,00,000
=	12 Times

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication