Question 59 Chapter 4 of +2-B
Table of Contents
Working Capital Turnover Ratio
59. (Working Capital T/O Ratio when GP on Sales is given) Calculate the working capital turnover Ratio from the following
| ₹ | |
| Working capital | 10,00,000 |
| Cost of goods sold (i.e. Cost of Revenue from Operation) | 42,00,000 |
| Gross profit on Sale 30% |
The solution of Question 59 Chapter 4 of +2-B: –
| Cost of sales | = | ₹ 42,00,000 |
| Working Capital | = | ₹ 30,000 |
| Gross profit on Sale | = | 30% |
| Calculation of Net Sales | ||
| Let assume sales | = | ₹ 100 |
| Less: Profit 30% on sale | = | ₹ 30 |
| When cost is ₹ 42,00,000 then sales | = | ₹ 100 | X | ₹42,00,000 |
| ₹ 70 | ||||
| = | ₹ 60,00,000 |
| = | Net Sales | |
| Working Capital Turnover Ratio | Working Capital | |
| Working Capital Turnover Ratio | = | ₹ 60,00,000 |
| ₹ 10,00,000 | ||
| = | 6 times |
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
