Question 64 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 64 Chapter 4 of +2-B

Question 64 Chapter 4 of +2-B

Interest Coverage Ratio

64. Calculate Inventory Turnover Ratio from the Following:
 

 Rs.
Opening Inventory29,000
Closing Inventory31,000
Revenue from Operations i.e., Sales3,20,000
Gross Profit ratio of 25% 

The solution of Question 64 Chapter 4 of +2-B: –

Sales=Rs. 3,20,000
Gross ProfitRs. 3,20,000X25
10
 =Rs. 80,000 
Cost of Goods sold=Total sales – Gross Profit
 =Rs. 3,20,000 – Rs. 80,000
 =Rs. 2,40,000



Average StockOpening Stock + Closing Stock
2

 

Average StockRs. 29,000 + 31,000
2
 =Rs. 30,000



Inventory Turnover RatioCost of Goods of Goods Sold
Average Stock

 

Inventory Turnover RatioRs. 2,40,000
Rs. 30,000
 =8 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)

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T.S. Grewal’s Analysis of Financial Statements

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