Question 68 Chapter 4 of +2-B
Table of Contents
Interest Coverage Ratio
68.Rs. 2,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold),
during the year. If Inventory Turnover Ratio is 8 times, calculate inventories at the end of the year. Inventories at the end is 1.5 times that of in the beginning.
The solution of Question 68 Chapter 4 of +2-B: –
| Inventory Turnover Ratio | = | Cost of Goods of Goods Sold |
| Average Stock |
| 8 | = | Rs. 2,00,000 |
| Rs. 90,000 | ||
| = | 2,00,000/8 | |
| Average Inventory | = | Rs. 25,000 |
| Average Inventory | = | Opening Inventory + Closing Inventory |
| 2 |
| Rs. 25,000 | = | x + 1.5x |
| 2 | ||
| Rs. 25,000 x 2 | = | 2.5x |
| X | = | Rs. 20,000 |
| Opening Inventory (x) | = | Rs. 20,000 |
| Closing Inventory | = | Rs. 20,000 X 1.5 |
| Closing Inventory | = | Rs. 30,000 |
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
