Question 67 Chapter 4 of +2-B
Table of Contents
Interest Coverage Ratio
67. From the following data, calculate Inventory Turnover Ratio:
Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over Opening Inventory Rs. 20,000.
The solution of Question 67 Chapter 4 of +2-B: –
| Closing Inventory | = | Rs. 1,00,000 |
| Closing Inventory | = | Rs. 20,000 + Opening Inventory |
| Opening Inventory | = | Rs. 1,00,000 – Rs. 20,000 |
| = | Rs. 80,000 | |
| Cost of Goods Sold | = | Sales – Sales Return – Gross Profit |
| = | Rs. 5,00,00 – Rs. 50,000 – Rs. 90,000 | |
| = | Rs. 3,60,000 |
| Average Inventory | = | Opening Inventory + Closing Inventory |
| 2 |
| Average Inventory | = | Rs. 80,000 + 1,00,000 |
| 2 | ||
| = | Rs. 90,000 |
| Inventory Turnover Ratio | = | Cost of Goods of Goods Sold |
| Average Stock |
| Inventory Turnover Ratio | = | Rs. 3,60,000 |
| Rs. 90,000 | ||
| = | 4 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)
- 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
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