Question 100 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 100 Chapter 4 of +2-B
Question No. 100- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 100 Chapter 4 of +2-B

Working Capital Turnover

100. Capital Employed Rs. 12,00,000; Net Fixed Assets Rs. 8,00,000; Cost of
Goods Sold or Cost of Revenue from Operations 40,00,000; Gross Profit is 20% on Cost.
Calculate Working Capital Turnover Ratio.

The solution of Question 100 Chapter 4 of +2-B: –

Cost of Goods Sold = Rs. 40,00,000
Gross Profit = 20% of Cost

 

Gross Profit =Rs.40,00,000   + 20
100
  =Rs. 8,00,000      

 

Total Sales = Cost of Goods Sold + Gross Profit
  = Rs. 40,00,000 + Rs. 8,00,000
  = Rs. 48,00,000
Working Capital = Capital Employed – Fixed Assets
  = Rs. 12,00,000 – Rs. 8,00,000
  = Rs. 4,00,000

 

Working Capital Turnover Ratio Cost of Goods Sold
Working Capital
  Rs. 48,00,000
Rs. 4,00,000
  = 12 Times

 

Balance Sheet: Meaning, Format & Examples

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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)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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