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Question 57 Chapter 4 of +2-B
Working Capital Turnover Ratio
57. (Working Capital T/O Ratio from Cost of Sales) Calculate working capital turnover ratio from the following :
| ₹ | |
| Cost of goods sold (i.e. Cost of Revenue from Operation) | 2,00,000 |
| Current Assets | 1,00,000 |
| Current Liabilities | 50,000 |
| Working Capital Turnover Ratio | = | Sales or Revenue from Operation |
| Working Capital | ||
| Cost of Revenue from Operation | = | ₹ 2,00,000 |
| Working Capital | = | Current Assets – Current Liabilities |
| = | ₹ 1,00,000 - ₹ 50,000 | |
| = | ₹ 50,000 | |
| = | ₹ 2,00,000 | |
| Working Capital Turnover Ratio | ₹ 5,00,000 | |
| = | 4 times |
*In this question sales or revenue from an operation is not given, to solve this question Cost of Revenue from Operation are taken for the calculation of the ratio.
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 57 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.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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