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Question 63 Chapter 4 of +2-B
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Table of Contents
Interest Coverage Ratio
63. Calculate Inventory Turnover Ratio from the following information:
Opening Inventory is Rs. 50,000; Purchases Rs. 3,90,000; Revenue from Operations, i.e., Net Sales Rs. 6,00,000; Gross Profit Ratio 30%
The solution of Question 63 Chapter 4 of +2-B: –
| Cost of Goods of Goods Sold | = | Net Sales – Gross Profit |
| = | Rs.6,00,000 – 30%(6,00,000) | |
| = | Rs.6,00,000 – Rs. 1,80,000 | |
| = | Rs.4,20,000 | |
| Cost of Goods of Goods Sold | = | Opening Inventory + Purchases – Closing Inventory |
| Rs. 4,20,000 | = | Rs. 50,000 + 3,90,000 – Closing Inventory |
| = | Rs. 50,000 + Rs. 3,90,000 –Rs. 4,20,000 | |
| Closing Inventory | = | Rs. 20,000 |
| Average Stock | = | Opening Stock + Closing Stock |
| 2 |
| Average Stock | = | Rs. 50,000 + Rs. 20,000 |
| 2 | ||
| = | Rs. 35,000 |
| Inventory Turnover Ratio | = | Cost of Goods of Goods Sold |
| Average Stock |
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| Inventory Turnover Ratio | = | Rs. 4,20,000 |
| Rs. 35,000 | ||
| = | 12 Times |
Balance Sheet: Meaning, Format & Examples
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Also, Check out the solved question of previous Chapters: –
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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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