Advertisement

Question 102 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 102 Chapter 4 of +2-B
Question No. 102- Chapter No.4 - T.S. Grewal +2 Book Part B

Advertisement

Question 102 Chapter 4 of +2-B

Advertisement

Working Capital Turnover

102. A company earns Gross Profit of 25% on cost. For the year ended 31st
March, 2017 its Gross Profit was Rs. 5,00,000; Equity Share Capital of the
company was Rs. 10,00,000; Reserves and Surplus Rs. 2,00,000; Long
term Loan 3,00,000 and Non-current Assets were 10,00,000.
Compute the ‘Working Capital Turnover Ratio’ of the company.

The solution of Question 102 Chapter 4 of +2-B: –

Gross Profit=25% on Cost
Cost of Goods sold=100
Gross Profit=25
Revenue from Operations=125
Revenue from Operations=Rs.5,00,000X125
25
 =Rs.25,00,000  

 

Capital Employed=Shareholder’s Funds + Non- Current Liabilities
 =Rs. 10,00,000 + Rs. 2,00,000 + Rs. 3,00,000
 =Rs. 15,00,000
Working Capital=Capital Employed – Non- current Assets
 =Rs. 15,00,000 – Rs. 10,00,000
 =Rs. 5,00,000

Advertisement-X

 

Working Capital Turnover RatioNet Sales
Working Capital
 Rs. 25,00,000
Rs. 5,00,000
 =5 Times

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

Advertisement-X

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

Advertisement-Y

Advertisement

Advertisement

error: Content is protected !!