Question 68 Chapter 4 of +2-B – T.S. Grewal 12 Class

The solution of Question 67 Chapter 4 of +2-B - T.S. Grewal +2 Book 2019 with the explanation of all transactions to understand better.

Question 68 Chapter 4 of +2-B

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

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.