Question 67 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 67 Chapter 4 of +2-B

Question 67 Chapter 4 of +2-B

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)

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 67 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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