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Question 39 Chapter 4 of +2-B
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Table of Contents
III. Activity Ratios
Inventory Turnover Ratio
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39. (Cost of Goods Sold & G.P.) A business house turns over its inventory 7 times a year and carries an average inventory at a cost of 35,000. Find out the cost of goods sold and gross profit if the mark upon sales is 25%.
The solution of Question 39 Chapter 4 of +2-B: –
Inventory Turnover Ratio | = | Cost of goods sold |
Average Inventory |
7 | = | Cost of goods sold |
₹ 35,000 |
Cost of goods sold | = | ₹ 35,000 x 7 |
= | ₹ 2,45,000 | |
Gross Profit on Sales | = | 25% |
Sales | = | ₹ 100 |
Cost of goods sold | = | 100 – 25 |
= | 75 |
Gross profit | = | ₹ 2,45,000 | X | 25 |
75 | ||||
= | ₹ 81,667 |
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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