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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 106 Chapter 4 of +2-B
Miscellaneous (Analytical Questions)
106. (Stock T/O Ratio/C.A./Stock) From the given information, calculate the stock turnover ratio.
(a) Sales (Revenue from Operations) ₹ 3,00,000, Gross profit 25% on cost. Opening Stock was 1/3rd of the value of the closing stock. The closing stock was 30% of sales.
(b) A business has a current ratio of 3: 1 and a quick ratio of 1.2: 1. If the working capital is ₹ 1,50,000. Calculate the total current Assets and stock.
| (a) Stock Turnover Ratio | = | Cost of Goods Sold |
| Average Stock | ||
| = | ₹ 2,40,000 | |
| ₹ 60,000 | ||
| = | 4 times |
Working Notes :
Calculation of Cost of goods Sold :
| Gross Profit | = | 25% on Costs |
| Sales | = | ₹ 3,00,000 |
| Cost Price | = | ₹ 100 |
| Gross Profit | = | ₹ 25 |
| Sale Price | = | ₹ 125 |
| Gross Profit | = | Price | X | Sales |
| Sale Price | ||||
| = | ₹ 25 | X | ₹ 3,00,000 | |
| ₹ 125 | ||||
| = | ₹ 60,000 | |||
| Cost of goods sold | = | Sales – Gross Profit | ||
| = | ₹ 3,00,000 - ₹ 60,000 | |||
| = | ₹ 2,40,000 | |||
| (b) Working Capital | = | Current Assets – Current Liabilities | ||
| Current Ratio | = | 3 : 1 | ||
| Working Capital | = | 3-1 | ||
| Working Capital | = | 2 | ||
| If Working Capital 2 then Current Assets | = | 3 | ||
| = | 3 | x | ₹ 1,50,000 | |
| 2 | ||||
| = | ₹ 25,000 | |||
| Working Capital | = | Current Assets – Current Liabilities | ||
| ₹ 1,50,000 | = | ₹ 2,25,000 – Current Liabilities | ||
| = | ₹ 2,25,000 – ₹ 1,50,000 | |||
| = | ₹ 75,000 | |||
| Quick Ratio | = | 1.2: 1 | ||
| 1.2 : 1 | = | Quick Assets | ||
| Current Liabilities | ||||
| = | Quick Assets | |||
| ₹ 75,000 | ||||
| Quick Assets | = | ₹ 75,000 x 1.2 | ||
| = | ₹ 90,000 | |||
| Inventory | = | Current Assets – Quick Assets | ||
| = | ₹ 2,25,000 – ₹ 90,000 | |||
| = | ₹ 1,35,000 |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 106 Chapter 4 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
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