Question 58 Chapter 4 of +2-B

Question 58 Chapter 4 of +2-B

III. Activity Ratios

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 receivables30,000
Inventory 10,000
Input IGST10,000
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: –

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

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