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Question 37 Chapter 4 of +2-B – USHA Publication 12 Class

Question 37 Chapter 4 of +2-B
Q-37- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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Question 37 Chapter 4 of +2-B

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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 xX20
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

 

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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

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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