Question 100 Chapter 4 of +2-B
Table of Contents
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)
- 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
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