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 Inventory 29,000
Closing Inventory 31,000
Revenue from Operations i.e., Sales 3,20,000
Gross Profit ratio of 25%  

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

Sales = Rs. 3,20,000
Gross Profit Rs. 3,20,000X 25
10
  = Rs. 80,000  
Cost of Goods sold = Total sales – Gross Profit
  = Rs. 3,20,000 – Rs. 80,000
  = Rs. 2,40,000



Average Stock Opening Stock + Closing Stock
2

 

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



Inventory Turnover Ratio Cost of Goods of Goods Sold
Average Stock

 

Inventory Turnover Ratio Rs. 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)

  • 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)

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

2 Book 3 min 225x300 - Question 64 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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