Question 76 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 76 Chapter 4 of +2-B

Interest Coverage Ratio

76. From the following Information, calculate Inventory Turnover Ratio:
Credit Revenue from Operations 3,00,000; Cash Revenue from Operations 1,00,000, Gross Profit 25% of Cost, Closing Inventory was 3 times the Opening Inventory. Opening Inventory was 10% of Cost of Revenue from Operations.

The solution of Question 76 Chapter 4 of +2-B: -

Opening Inventory	=	@ 10% of Cost of Goods Sold
	=	Rs. 30,000
Closing Inventory	=	Rs. 30,000 x 3
	=	Rs. 90,000
Cost of Revenue from Operations	=	Revenue from Operations - Gross Profit
	=	Rs. 4,00,000 – Rs. 1,00,000
	=	Rs. 3,00,000

 

Inventory Turnover Ratio	=	Cost of Revenue from Operations
		Average Inventory

Inventory Turnover Ratio	=	Rs. 3,00,000
		Rs. 60,000
	=	5 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