Advertisement

Question 70 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 70 Chapter 4 of +2-B
Question No. 70- Chapter No.4 - T.S. Grewal +2 Book Part B

Advertisement

Question 70 Chapter 4 of +2-B

Advertisement

Interest Coverage Ratio

70. Calculate Inventory Turnover Ratio from the data given below:

 Rs. Rs.
Inventory at the beginning of the year20,000Carriage Inwards5,000
Inventory at the end of the year10,000Revenue from Operations, i.e., Sales1,00,000
Purchases50,000  

State the significance of this ratio.

The solution of Question 70 Chapter 4 of +2-B: –

Cost of Goods of Goods Sold=Opening Stock +Purchases – Closing Stock
 =Rs. 20,000 + Rs. 50,000 + Rs. 5,000 − Rs.10,000
 =Rs. 65,000



Average InventoryOpening Inventory + Closing Inventory
2

Advertisement-X

 

Average InventoryRs. 20,000 + Rs. 10,000
2
 =Rs. 15,000



Inventory Turnover RatioCost of Goods of Goods Sold
Average Stock

 

Inventory Turnover RatioRs. 65,000
Rs. 15,000
 =4.33 Times

 

 

Balance Sheet: Meaning, Format & Examples

Thanks, Please Like and share with your friends  

Advertisement-X

Advertisement-Y

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

Advertisement

Advertisement

error: Content is protected !!