Question 37 Chapter 4 of +2-B
Table of Contents
37. (Inventory T/O Ratio/Sales, Returns, GP rate given) From the following details, calculate
inventory turnover.
Opening Inventory ₹ 31,000 Closing inventory ₹ 39,000, Credit Sales (Revenue from Operation) ₹ 1,00,000
Cash Sales (Revenue from Operations) 2,00,000 Returns inwards 10,000. Gross Profit Ratio 20%.
The solution of Question 37 Chapter 4 of +2-B: –
| Inventory Turnover Ratio | = | Cost of goods sold |
| Average Inventory |
| Cost of goods sold | = | Net Total Sales – Gross profit |
| = | Cash Sales + Credit Sales – Sales Return | |
| = | ₹ 2,00,000 + ₹ 1,00,000 – ₹ 10,000 | |
| = | ₹ 2,90,000 | |
| Gross profit | = | 20% of Net Total Sales |
| Net Total Sales | = | ₹ 2,90,000 |
| Gross profit | = | ₹ 2,90,000 x | X | 20 |
| 100 | ||||
| = | ₹ 58,000 |
| Cost of goods sold | = | Net Total Sales – Gross profit |
| = | ₹ 2,90,000 – ₹ 58,000 | |
| = | ₹ 2,32,000 |
| Debt Equity Ratio | = | Opening Inventory – Closing Inventory |
| 2 | ||
| = | ₹ 31,000 – ₹ 39,000 | |
| 2 | ||
| = | ₹ 35,000 |
| Inventory Turnover Ratio | = | ₹ 2,32,000 |
| ₹ 35,000 | ||
| = | 6.62 Times |
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
