Question 115 Chapter 4 of +2-B – USHA Publication 12 Class

Question 115 Chapter 4 of +2-B

Question 115 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

115. (Stock T/O Ratio/GP Ratio) From the following information, calculate the stock turnover ratio and the gross profit ratio

 
Opening Inventory 18,000
Closing Inventory 22,000
Purchases  46,000
Wages  14,000
Sales (Revenue from Operation)  80,000
Carriage inwards 4,000

 

 

The solution of Question 115 Chapter 4 of +2-B: – 

 

(i) Stock Turnover Ratio = Cost of goods sold
Average Inventory
     
  = ₹ 60,000
  ₹ 20,000
  = 3 times

(ii) Gross Profit Ratio

= Gross Profit X 100
Net Sales
         
  = ₹ 20,000 X 100
  ₹ 80,000
  = 25%    

 

Working Notes:-

Average Stock = Opening Stock + Closing Stock
2
     
  = ₹ 18,000 + ₹ 22,000
  2
  = ₹ 20,000
Cost of goods sold = Opening Stock + Purchases + Wages + Carriage Inward – Closing Stock
  = ₹ 18,000 + ₹ 46,000 + ₹ 14,000 + ₹ 4,000 – ₹ 22,000
  = ₹ 60,000
Gross Profit = Sales – Cost of goods sold
  = ₹ 80,000 + ₹ 60,000
  = ₹ 20,000

 


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

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