Question 70 Chapter 7 -Unimax Publication Class 12 Part 2 – 2021

Question No -70 Chapter no - 7 Unimax Class - 12 Part -II
Question No -70 Chapter no - 7 Unimax Class - 12 Part -II

Question 70 Chapter 7 – Unimax Publication Class 12 Part 2 – 2021

70. The following are some of the ratios of pionner Ltd.

Inventory turnover ratio 4 months
Creditor turnover ratio 3 months
Debtors turnover ratio 1.5months
Gross profit ratio 20 %

The solution of Question 70 Chapter 7 – Unimax Publication Class 12 Part 2-2021 : –

(i) G.P. ratio = G.P. X 100
Net sales
40 % = 4,00,000 X 100
Net sales
Net sales = 4,00,000 X 100
40
  = ₹ 10,00,000    
(ii) G.P = Net sales – C.O.G.S
4,00,000 = 10,00,000 – 4,00,000
C.O.G.S. = 10,00,000 – 4,00,000
  = 6,00,000
(iii) Inventory turnover ratio = 12 months
STR
4 = 12
STR
Stock turnover ratio = 12 = 3times 
4
  = C.O.G.S.
Average Stock

3

= 6,00,000
Average Stock

Average Stock

= 6,00,000
3

 

= ₹ 2,00,000
Let opening stock = x
Let closing stock =  x + 50,000
Average stock = Opening stock+closing stock 
2
  = x + x + 50,000
2
4,00,000 = 2x + 50,000
2x = 4,00,000 – 50,000

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  = 3,50,000
2
  = ₹ 1,75,000
Closing stock = x + 50,000
  = 1,75,000 + 50,000
Closing stock = 2,25,000 Ans.
(iv) C.O.G.S = opening stock + net purchases + direct expenses – closing stocks
6,00,000 = = 1,75,000 + purchases + nil – 2,25,000
6,00,000 = purchases – 50,000
Purchases = 6,00,000 + 50,000
Purchases = 6,50,000 Ans.

(v) Inventory turnover ratio

= 12 months
CTR

3

= 12
CTR
Creditors turnover ratio = 12 = 4times
3

 Creditors turnover ratio

= net credit purchases
creditors+bills payable 

4

= 6,50,000
Creditors +B/P

Creditors +B/P

= 6,50,000
4
Creditors + 25,000 =  1,62,500
Creditors =  1,62,500 – 25,000
Sundry creditors = 1,37,500 Ans
(vi) Average collection period = 12 months
DTR
1.5 = 12
DTR
Debtors turnover ratio = 12
15
  = 8 times
Debtors turnover ratio = Net Credit Sales
Debtors +B/R
8 = 10,00,000
Debtors +B/R
Debtors +B/R = 10,00,000
8

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Debtors + 40,000 = 1,25,000
Debtors = 1,25,000 – 40,000
Sundry creditors = ₹ 85,000 Ans

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Accounting Ratios – Meaning and Definition

 

Unimax Publication – Accountancy PSEB Class 12 – Volume I – Solution

Unimax Publication – Accountancy PSEB (Class 12) – Part – II – Solution

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