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Question 40 Chapter 4 of +2-B – USHA Publication 12 Class

Question 40 Chapter 4 of +2-B
Q-40- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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Question 40 Chapter 4 of +2-B

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III. Activity Ratios

Inventory Turnover Ratio

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 40. (Cost of Goods Sold) If the Inventory turnover ratio is 5 times and the average inventory ₹ 2,00,000. Find out the cost of goods sold (i.e. Cost of Revenue from Operation).

 

The solution of Question 40 Chapter 4 of +2-B: – 

Inventory Turnover Ratio = 5 Times
Average Inventory = ₹ 2,00,000
Inventory Turnover Ratio = Cost of goods sold
Average Inventory
5 = Cost of goods sold
₹ 2,00,000
     
Cost of goods sold = ₹ 2,00,000 x 5
  = ₹ 10,00,000


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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