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Question 56 Chapter 14 of Class 12 Part – 2 – 2024
Working Capital Turnover Ratio
56. (Working Capital T/O Ratio from Sales) From the following calculate working capital turnover.
| ₹ | |
| Current Assets | 10,00,000 |
| Current liabilities | 4,00,000 |
| Sales (Revenue from Operation) | 20,00,000 |
| Working Capital Turnover Ratio | = | Sales or Revenue from Operation |
| Working Capital | ||
| Sales or Revenue from Operation | = | ₹ 20,00,000 |
| Working Capital | = | Current Assets – Current Liabilities |
| = | ₹ 10,00,000 - ₹ 4,00,000 | |
| = | ₹ 6,00,000 | |
| = | ₹ 20,00,000 | |
| Working Capital Turnover Ratio | ₹ 6,00,000 | |
| = | 3.33 times |
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.
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