 Question 106 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

106. (Stock T/O Ratio/C.A./Stock) From the given information, calculate the stock turnover ratio.
(a) Sales (Revenue from Operations) ₹ 3,00,000, Gross profit 25% on cost. Opening Stock was 1/3rd of the value of the closing stock. The closing stock was 30% of sales.
(b) A business has a current ratio of 3: 1 and a quick ratio of 1.2: 1. If the working capital is ₹ 1,50,000. Calculate the total current Assets and stock.

## The solution of Question 106 Chapter 4 of +2-B: –

 (a) Stock Turnover Ratio = Cost of Goods Sold Average Stock = ₹ 2,40,000 ₹ 60,000 = 4 times

Working Notes :
Calculation of Cost of goods Sold :

 Gross Profit = 25% on Costs Sales = ₹ 3,00,000 Cost Price = ₹ 100 Gross Profit = ₹ 25 Sale Price = ₹ 125
 Gross Profit = Price X Sales Sale Price = ₹ 25 X ₹ 3,00,000 ₹ 125 = ₹ 60,000 Cost of goods sold = Sales – Gross Profit = ₹ 3,00,000 – ₹ 60,000 = ₹ 2,40,000 (b) Working Capital = Current Assets – Current Liabilities Current Ratio = 3 : 1 Working Capital = 3-1 Working Capital = 2 If Working Capital 2 then Current Assets = 3 = 3 x ₹ 1,50,000 2 = ₹ 25,000 Working Capital = Current Assets – Current Liabilities ₹ 1,50,000 = ₹ 2,25,000 – Current Liabilities = ₹ 2,25,000 – ₹ 1,50,000 = ₹ 75,000 Quick Ratio = 1.2: 1 1.2 : 1 = Quick Assets Current Liabilities = Quick Assets ₹ 75,000 Quick Assets = ₹ 75,000 x 1.2 = ₹ 90,000 Inventory = Current Assets – Quick Assets = ₹ 2,25,000 – ₹ 90,000 = ₹ 1,35,000

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

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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