Question 57 Chapter 4 of +2-B

Question 57 Chapter 4 of +2-B

III. Activity Ratios

Working Capital Turnover Ratio

57. (Working Capital T/O Ratio from Cost of Sales) Calculate working capital turnover ratio from the following :

 
Cost of goods sold (i.e. Cost of Revenue from Operation) 10,00,000 
Current Assets 4,00,000 
Current Liabilities20,00,000

 

The solution of Question 57 Chapter 4 of +2-B: – 

 

   
Working Capital Turnover Ratio=Sales or Revenue from Operation
 Working Capital
Cost of Revenue from Operation=₹ 2,00,000
Working Capital=Current Assets – Current Liabilities
 =₹ 1,00,000 – ₹ 50,000
 =₹ 50,000
 =₹ 2,00,000
Working Capital Turnover Ratio₹ 5,00,000
   
 =4 times

*In this question sales or revenue from an operation is not given, to solve this question Cost of Revenue from Operation are taken for the calculation of the ratio.


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 57 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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