# Question 55 Chapter 4 of +2-B – USHA Publication 12 Class

Q-55- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 55 Chapter 4 of +2-B

55. (Net Purchases/Trade Payable T/O Ratio/Stock T/O Ratio & GP are given) Find out
(i) Net purchases (ii) Trade Payable turnover ratio
Gross profit on sales (Revenue from Operation) is 20% and the value of gross profit is ₹ 60,000 inventory turnover ratio is 6 times and the opening inventory is ₹ 8,000 less than the closing inventory. Opening sundry trade payable ₹ 40,000 and closing sundry trade payable is ₹ 50,000.

## The solution of Question 55 Chapter 4 of +2-B: –

 Gross profit = 20% on sales Cost of goods sold = 80% of sales Sales = Cost of goods sold + Profit = ₹ 80+ ₹ 20
 Cost of goods sold = 80 X 60,000 20 = ₹ 2,40,000
 Inventory Turnover Ratio = Cost of goods sold Average inventory 6 = 1,40,000 Average inventory Average Inventory = 2,40,000 6 Average Inventory = ₹ 40,000 Average Inventory = Opening Inventory + Closing Inventory 2 Let assume Closing Inventory = x Opening Inventory = x – ₹ 8,000 Average Inventory = (x – ₹ 8,000) + x 2 ₹ 40,000 = 2x – ₹ 8,000 2 ₹ 40,000 x 2 = 2x – ₹ 8,000 ₹ 80,000 = 2x – ₹ 8,000 ₹ 80,000 + ₹ 8,000 = 2x = ₹ 88,000 2 Closing Inventory = ₹ 44,000 Opening Inventory = Closing Inventory – ₹ 8,000 = ₹ 44,000 – ₹ 8,000 = ₹ 36,000

(a) Computation of net purchases

 Cost of goods sold = Opening Inventory + Purchases – Closing Inventory ₹ 2,40,000 = ₹ 36,000 + Purchases – ₹ 44,000 Purchases = ₹ 2,40,000 + ₹ 8,000 = ₹ 2,48,000

(b) Accounts Payable Turnover Ratio

 = Net Purchases (Credit) Average Accounts Payable Average accounts payable = Opening accounts payable + Closing accounts payable 2 = ₹ 40,000 + ₹ 50,000 2 = ₹ 45,000 = ₹ 2,48,000 Accounts Payable Turnover Ratio ₹ 45,000 = 5.51 times

End of Solution

## Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 14 – Accounting Ratios Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 03 Chapter 4 of +2-B – USHA Publication 12 Class

Question 09 Chapter 4 of +2-B – USHA Publication 12 Class

Question 15 Chapter 4 of +2-B – USHA Publication 12 Class

Question 21 Chapter 4 of +2-B – USHA Publication 12 Class

Question 27 Chapter 4 of +2-B – USHA Publication 12 Class

Question 32 Chapter 4 of +2-B – USHA Publication 12 Class

Question 38 Chapter 4 of +2-B – USHA Publication 12 Class

Question 44 Chapter 4 of +2-B – USHA Publication 12 Class

Question 50 Chapter 4 of +2-B – USHA Publication 12 Class

Question 56 Chapter 4 of +2-B – USHA Publication 12 Class

Question 62 Chapter 4 of +2-B – USHA Publication 12 Class

Question 68 Chapter 4 of +2-B – USHA Publication 12 Class

Question 74 Chapter 4 of +2-B – USHA Publication 12 Class

Question 80 Chapter 4 of +2-B – USHA Publication 12 Class

Question 86 Chapter 4 of +2-B – USHA Publication 12 Class

Question 92 Chapter 4 of +2-B – USHA Publication 12 Class

Question 98 Chapter 4 of +2-B – USHA Publication 12 Class

Question 104 Chapter 4 of +2-B – USHA Publication 12 Class

Question 110 Chapter 4 of +2-B – USHA Publication 12 Class

Question 116 Chapter 4 of +2-B – USHA Publication 12 Class

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## Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

Chapter No. 11 – Financial Statements of a Company

Chapter No. 12 – Financial Statement Analysis

Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size

Chapter No. 14 – Accounting Ratios

Chapter No. 15 – Cash Flow Statement

## Check out Part 1 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 1 Class 12 by Unimax Publication