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Question 118 Chapter 4 of +2-B
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Table of Contents
Miscellaneous (Analytical Questions)
118. (Calculation of Opening Inventory & Closing Inventory) Calculate the amount of opening stock and closing stock from the following figures:-
Average Debt Collection period 4 months; Inventory Turnover ratio 3 times, Average Trade Receivable ₹ 1,00,000; cash sales being 25% of total sales; Gross profit ratio 25% Inventory at the end was 3 times more than that in the beginning.
The solution of Question 118 Chapter 4 of +2-B: –
Average Debt Collection Period | = | No. of working days |
| Debtors Turnover Ratio | ||
| 4 | = | 12 Months |
| Debtors Turnover Ratio | ||
| Debtors Turnover Ratio | = | 12 |
| 4 | ||
| = | 3 times |
| Debtors Turnover Ratio | = | Net Credit Sales |
| Average Debtors | ||
| 3 | = | Net Credit Sales |
| ₹ 1,00,000 | ||
| Net Credit Sales | = | 3 x 1,00,000 |
| = | ₹ 3,00,000 | |
| Let Assume Total Sales | = | ₹ 1 |
| Cash Sales | = | 1 |
| 4 |
(i) Return on investment Ratio | = | ₹ 1 | – | 1 |
| 4 | ||||
| = | 3 | |||
| 4 | ||||
| Total Sales | = | 3 | X | x ₹ 3,00,000 |
| 4 | ||||
| = | ₹ 4,00,000 | |||
| Cost of goods sold | = | Sales – Gross Profit | ||
| = | ₹ 4,00,000 – 25% | |||
| = | ₹ 4,00,000 – ₹ 1,00,000 | |||
| = | ₹ 3,00,000 | |||
| Inventory Turnover Ratio | = | Cost of goods sold | ||
| Average Inventory | ||||
| 3 | = | ₹ 3,00,000 | ||
| Average Inventory | ||||
| Average Inventory | = | ₹ 3,00,000 | ||
| 3 | ||||
| = | ₹ 1,00,000 | |||
| Average Inventory | = | Opening Stock + Closing Stock | ||
| 2 | ||||
| ₹ 1,00,000 x 2 | = | Opening Stock + Closing Stock | ||
| = | ₹ 2,00,000 | |||
| Opening Stock | = | ₹ 1 | ||
| Closing Stock | = | ₹ 3 | ||
| Total Stock | = | 1 + 3 | ||
| = | 4 | |||
| Opening Stock | = | ₹ 2,00,000 | X | 1 |
| 4 | ||||
| = | ₹ 50,000 | |||
| Closing Stock | = | ₹ 1,00,000 | X | 3 |
| 4 | ||||
| = | ₹ 1,50,000 |
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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
