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

Question 67 Chapter 4 of +2-B
Question No. 67- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 67 Chapter 4 of +2-B

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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 InventoryOpening Inventory + Closing Inventory
2

 

Average InventoryRs. 80,000 + 1,00,000
2
 =Rs. 90,000



Inventory Turnover RatioCost of Goods of Goods Sold
Average Stock

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Inventory Turnover RatioRs. 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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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