Advertisement
Question 58 Chapter 4 of +2-B
Advertisement
Table of Contents
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.
Advertisement-X
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Leave a Reply