Question 114 Chapter 4 of +2-B – USHA Publication 12 Class

Question 114 Chapter 4 of +2-B

Question 114 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

114. (GP Ratio/Inventory T/O Ratio/Trade Receivable T/O Ratio/Net Profit Ratio) The following information is given about a company :

 
Sales (Revenue from Operation) 4,00,000
Gross profit 10,000
Cost of goods sold (i.e. Cost of Revenue from Operations)  
Opening Inventory  
Closing Inventory 20,000
Trade Receivable  1,00,000
Net profit 3,000
Net fixed assets 60,000

From the above information, calculate the following ratios : (i) Gross profit ratio. (ii) Inventory turnover ratio.(iii) Trade Receivable turnover ratio. (iv) Net profit ratio.

 

The solution of Question 114 Chapter 4 of +2-B: – 

 

(i) Inventory Turnover Ratio = Cost of goods sold
Average Inventory
     
  = ₹ 1,20,000
  ₹ 30,000
  = 4 times

(ii) Gross Profit Ratio

= Gross Profit X 100
Net Sales
         
  = ₹ 30,000 X 100
  ₹ 1,50,000
  = 20%    
(iii) Trade Receivables Turnover Ratio = Net Sales
Average Trade Receivable
     
  = ₹ 1,50,000
  ₹ 16,000
  = 9.375 times

 

(iv) Net Profit Ratio

= Net Profit X 100
Net Sales
         
  = ₹ 14,000 X 100
  ₹ 1,50,000
  = 9.33%    

Working Notes :-

Average Inventory = Opening Inventory + Closing Inventory
2
     
  = ₹ 29,000 + ₹ 31,000
  2
  = ₹ 30,000


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 114 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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