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

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: –