# Question 66 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question No. 66- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 66 Chapter 4 of +2-B

Interest Coverage Ratio

66. Revenue from Operations Rs. 4,00,000; Gross Profit Rs. 1,00,000; Closing
Inventory Rs. 1,20,000; Excess of Closing Inventory over Opening Inventory Rs. 40,000. Calculate Inventory Turnover Ratio :

### The solution of Question 66 Chapter 4 of +2-B: –

 Revenue from Operations = Rs. 4,00,000 Gross Profit = Rs. 1,00,000 Cost of Goods sold = Revenue from Operations – Gross Profit = Rs. 4,00,000 – Rs. 1,00,000 = Rs. 3,00,000 Closing Inventory = Rs. 40,000 + Opening Inventory Rs. 1,20,000 = Rs. 40,000 + Opening Inventory X = Rs. 1,20,000 – Rs. 40,000 = Rs. 80,000

 Average Stock = Opening Stock + Closing Stock 2

 Average Stock = Rs. 80,000 + 1,20,000 2 = Rs. 1,00,000

 Inventory Turnover Ratio = Cost of Goods of Goods Sold Average Stock

 Inventory Turnover Ratio = Rs. 3,00,000 Rs. 1,00,000 = 3 Times

Balance Sheet: Meaning, Format & Examples

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