Question 63 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 63 Chapter 4 of +2-B
Question No. 63- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 63 Chapter 4 of +2-B

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

 

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: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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