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Question 36 Chapter 4 of +2-B
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Table of Contents
36. (Inventory T/O Ratio/Sales & G.P. Rate given) Opening inventory 19,000 ; Closing inventory ₹ 21,000 ; Sales (Revenue from Operation) ₹ 2,00,000 ; Gross profit ratio on sales 25%. Calculate inventory turnover ratio.
The solution of Question 36 Chapter 4 of +2-B: –
(i) Debt Equity Ratio | = | Cost of goods sold |
Average Inventory |
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Total Long term Debt | = | Sales – Gross profit |
= | ₹ 2,00,000 – ₹ 50,000* | |
= | ₹ 1,50,000 |
Debt Equity Ratio | = | Opening Inventory + Closing Inventory |
2 | ||
= | ₹ 19,000 + ₹ 21,000 | |
2 | ||
= | ₹ 20,000 |
Inventory Turnover Ratio | = | ₹ 1,50,000 |
₹ 20,000 | ||
= | 7.5 Times |
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*Gross profit | = | 25% of Sales |
Sales | = | ₹ 2,00,000 |
Gross profit | = | ₹ 2,00,000 | X | 25 |
100 | ||||
= | ₹ 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

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