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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 No. 68- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 68 Chapter 4 of +2-B

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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 RatioCost of Goods of Goods Sold
Average Stock

 

8Rs. 2,00,000
Rs. 90,000
 =2,00,000/8
Average Inventory=Rs. 25,000

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Average InventoryOpening Inventory + Closing Inventory
2

 

Rs. 25,000x + 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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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)

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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