Question 110 Chapter 4 of +2-B
Table of Contents
Miscellaneous (Analytical Questions)
110. (Operating Ratio/Inventory T/O Ratio) From the following information calculate
(a) Operating Ratio (b) Inventory Turnover Ratio
| ₹ | ₹ | ||
| Opening Inventory | 5,00,000 | Interest Charges | 1,80,000 |
| Fixed Assets | 5,25,000 | Current liabilities | 6,00,000 |
| Cost of goods sold (i.e. Cost of Revenue from Operation) | 18,00,000 | Current Assets | 9,75,000 |
| Net Sales (Revenue from Operation) | 30,00,000 | Closing Inventory | 7,00,000 |
| Operating Expenses | 4,80,000 |
The solution of Question 110 Chapter 4 of +2-B: –
| (a) Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales | ||||
| = | ₹ 22,80,000 | X | 100 | |
| ₹ 30,00,000 | ||||
| = |
76% |
| (b) Inventory Turnover Ratio | = | Cost of goods sold |
| Average Inventory | ||
| = | ₹ 18,00,000 | |
| ₹ 6,00,000 | ||
| = | 3 times |
Working Notes :
| Operating Cost | = | Cost of goods sold + Operating Expenses |
| = | ₹ 18,00,000 – ₹ 4,80,000 | |
| = | ₹ 22,80,000 |
| Average Inventory | = | Opening Inventory + Closing Inventory |
| 2 | ||
| = | ₹ 5,00,000 + ₹ 7,00,000 | |
| 2 | ||
| = | ₹ 6,00,000 |
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
