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Question 136 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 136 Chapter 4 of +2-B
Question No. 136- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 136 Chapter 4 of +2-B

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Miscellaneous

136. Calculate Operating Profit Ratio from the following information:
Calculate Inventory Turnover Ratio; Gross Profit Ratio; and Opening Ratio.

  Rs.   Rs.
Revenue From Operations, i.e., Net Sales  1,50,000 Opening Inventory 29,000
Gross Profit 30,000 Closing Inventory 31,000
Cost of Revenue From Operations (Cost of Goods Sold) 1,20,000 Debtors 16,000

From the above information, calculate following ratios:
(i) Gross Profit Ratio,
(ii) Inventory Turnover Ratio, and
(iii) Trade Receivables Turnover Ratio.

 

The solution of Question 136 Chapter 4 of +2-B: –

I

Sales = Rs. 1,50,000
Gross Profit = Rs. 30,000

 

Gross Profit Ratio = Gross Profit X 100
Net Sales
Gross Profit Ratio = Rs 30,000 X 100
Rs 1,50,000
  = 20%
   

II

Average Inventory = Opening Inventory + Closing Inventory
2
  = Rs. 29,000 +Rs 31,000
2
  = Rs. 30,000
Average Inventory Turnover Ratio = Cost of Goods Sold
Average Inventory
  = Rs. 1,20,000
Rs. 30,000
  = 4 Times

III

Trade Receivable Turnover Ratio = Net Credit Sales
Average Trade Receivable
Trade Receivable Turnover Ratio = Rs 1,50,000
Rs 16,000
  = 9.4 Times



 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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