Question 106 Chapter 4 of +2-B

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=PriceXSales
Sale Price
     
 =₹ 25X₹ 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  
 =3x₹ 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 I – Solution

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

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

2 Book 3 min 225x300 - Question 106 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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