Question 67 Chapter 4 of +2-B – USHA Publication 12 Class

Question 67 Chapter 4 of +2-B

Question 67 Chapter 4 of +2-B

III. Activity Ratios

Working Capital Turnover Ratio

67. (GP Ratio when Inventory T/O Ratio & Trade Receivable T/O Ratio are given) Calculate the Gross Profit Ratio from the following data.

Average Inventory   ₹ 1,00,000 
Inventory Turnover Trade Receivable  5 times
Average Trade Receivable ₹ 2,00,000
Trade Receivable turnover ratio  5 times

Cash Sales (Revenue from Operation) 20% of Net Sales.

The solution of Question 67 Chapter 4 of +2-B: – 

 

     
Cost of goods sold = Average Inventory x Inventory Turnover Ratio
  = ₹ 1,00,000 x 5
  = ₹ 5,00,000
Net Credit Sales = Average Trade Receivable x Trade Receivable turnover ratio
Sales = ₹ 2,00,000 x 5
  = ₹ 10,00,000
Total Sales = 100 X ₹ 10,00,000
800
  = ₹ 12,50,000    
Gross Profit = Net Sales – Cost of goods sold    
  = ₹ 12,50,000 – ₹ 5,00,000    
  = ₹ 7,50,000    

 

Gross Profit Ratio = Gross Profit X 100
Sales
  = ₹ 7,50,000 X ₹ 1,50,000
₹ 12,50,000
         
  = 60%    




Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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