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Question 70 Chapter 7 - Unimax Publication Class 12 Part 2 - 2021
70. The following are some of the ratios of pionner Ltd.
| Inventory turnover ratio | 4 months |
| Creditor turnover ratio | 3 months |
| Debtors turnover ratio | 1.5months |
| Gross profit ratio | 20 % |
| (i) G.P. ratio | = | G.P. | X | 100 |
| Net sales |
| 40 % | = | 4,00,000 | X | 100 |
| Net sales |
| Net sales | = | 4,00,000 | X | 100 |
| 40 | ||||
| = | ₹ 10,00,000 |
| (ii) G.P | = | Net sales - C.O.G.S |
| 4,00,000 | = | 10,00,000 – 4,00,000 |
| C.O.G.S. | = | 10,00,000 – 4,00,000 |
| = | 6,00,000 |
| (iii) Inventory turnover ratio | = | 12 months |
| STR |
| 4 | = | 12 |
| STR |
| Stock turnover ratio | = | 12 | = | 3times |
| 4 |
| = | C.O.G.S. |
| Average Stock |
|
3 Advertisement |
= | 6,00,000 |
| Average Stock |
|
Average Stock |
= | 6,00,000 |
| 3 | ||
|
|
= | ₹ 2,00,000 |
| Let opening stock | = | x |
| Let closing stock | = | x + 50,000 |
| Average stock | = | Opening stock+closing stock |
| 2 |
| = | x + x + 50,000 |
| 2 |
| 4,00,000 | = | 2x + 50,000 |
| 2x | = | 4,00,000 – 50,000 |
| = | 3,50,000 |
| 2 | |
| = | ₹ 1,75,000 |
| Closing stock | = | x + 50,000 |
| = | 1,75,000 + 50,000 | |
| Closing stock | = | 2,25,000 Ans. |
| (iv) C.O.G.S | = | opening stock + net purchases + direct expenses – closing stocks |
| 6,00,000 | = | = 1,75,000 + purchases + nil – 2,25,000 |
| 6,00,000 | = | purchases – 50,000 |
| Purchases | = | 6,00,000 + 50,000 |
| Purchases | = | 6,50,000 Ans. |
|
(v) Inventory turnover ratio |
= | 12 months |
| CTR |
|
3 |
= | 12 |
| CTR |
| Creditors turnover ratio | = | 12 | = | 4times |
| 3 |
|
Creditors turnover ratio |
= | net credit purchases |
| creditors+bills payable |
|
4 |
= | 6,50,000 |
| Creditors +B/P |
|
Creditors +B/P |
= | 6,50,000 |
| 4 |
| Creditors + 25,000 | = | 1,62,500 |
| Creditors | = | 1,62,500 – 25,000 |
| Sundry creditors | = | 1,37,500 Ans |
| (vi) Average collection period | = | 12 months |
| DTR |
| 1.5 | = | 12 |
| DTR |
| Debtors turnover ratio | = | 12 |
| 15 | ||
| = | 8 times |
| Debtors turnover ratio | = | Net Credit Sales |
| Debtors +B/R |
| 8 | = | 10,00,000 |
| Debtors +B/R |
| Debtors +B/R | = | 10,00,000 |
| 8 |
| Debtors + 40,000 | = | 1,25,000 |
| Debtors | = | 1,25,000 – 40,000 |
| Sundry creditors | = | ₹ 85,000 Ans |
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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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