Q 41 CH 4 Book 2 Usha Pub. 2 Book 2020 Solution min - Question 41 Chapter 4 of +2-B  - USHA Publication  12 Class

Question 41 Chapter 4 of +2-B

III. Activity Ratios

Inventory Turnover Ratio

41. (Inventory T/O Ratio/Only Opening Inventory given) From the following data, calculate the Inventory Turnover Ratio

Cost of goods Sold (i.e. Cost of Revenue from Operation)₹ 2,00,000
Purchases₹ 3,00,000
Opening inventory₹ 50,000

 

The solution of Question 41 Chapter 4 of +2-B: – 

Inventory Turnover Ratio=Cost of goods sold
Average Inventory
Cost of goods sold=₹ 4,50,000
Closing Inventory=₹ 1,50,000
Average Inventory=Opening Inventory – Closing Inventory
2
   
 =₹ 50,000 + ₹ 1,50,000
 2
   
Average Inventory=₹ 1,00,000

Working Note

Cost of goods sold=Opening Inventory + Purchases + Direct Expenses – Closing Inventory
₹ 2,00,000=₹ 50,000 + ₹ 3,00,000 – Closing Inventory
Closing Inventory=₹ 3,50,000 – ₹ 2,00,000
 =₹ 1,50,000

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

2 Book 3 min 225x300 - Question 41 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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