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Question 36 Chapter 4 of +2-B – USHA Publication 12 Class

Question 36 Chapter 4 of +2-B
Q-36- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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Question 36 Chapter 4 of +2-B

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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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

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

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