# Question 58 Chapter 4 of +2-B – USHA Publication 12 Class

Q-58- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 58 Chapter 4 of +2-B

Working Capital Turnover Ratio

58. (Working Capital T/0 Ratio from Cost of Sales) Find out the working capital turnover ratio.

 ₹ Cash 10,000 Trade receivables 30,000 Inventory 10,000 Input IGST 10,000 Trade payable 30,000 Cost of sales 1,50,000

## The solution of Question 58 Chapter 4 of +2-B: –

 Working Capital Turnover Ratio = Cost of Revenue from Operation* Working Capital Cost of sales = ₹ 1,50,000 Working Capital = Current Assets – Current Liabilities = Cash + Trade receivables + Inventory + Input IGST = ₹ 10,000 + ₹ 30,000 + ₹ 10,000 + ₹ 10,000 = ₹ 60,000 Current Liabilities = Trade Payable = ₹ 30,000 Working Capital = ₹ 60,000 – ₹ 30,000 = ₹ 30,000 = ₹ 1,50,000 Working Capital Turnover Ratio ₹ 30,000 = 5 times

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

Also, Check out the solved question of previous Chapters: –