Question 71 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 71 Chapter 4 of +2-B

Table of Contents

The solution of Question 71 Chapter 4 of +2-B: –

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)

Interest Coverage Ratio

71. From the following information, calculate the value of the Opening Inventory:
Closing Inventory = Rs.68,000
Total Sales = Rs.4,80,000 (including Cash Sales ₹ 1,20,000)
Total Purchases = Rs.3,60,000 (including Credit Purchases ₹ 2,39,200)
Goods are sold at a profit of 25% on cost.

The solution of Question 71 Chapter 4 of +2-B: –

Gross Profit is 25% of Cost.
Cost of Goods of Goods Sold	=	X
	=	Rs. 65,000

Gross Profit	=	X	x	25	=	25x
				100		100

Cost of Goods of Goods Sold = Sales – Gross Profit

X	=	Rs.4,80,000	–	25x
				100

125x	=	Rs.4,80,000
100

X	=	Rs. 4,80,000 X 100
		125

Cost of Goods of Goods Sold	=	Rs. 3,84,000
Cost of Goods of Goods Sold	=	Opening Inventory + Purchases – Closing Inventory
Rs. 3,84,000	=	Opening Inventory + Rs. 3,60,000 – Rs. 68,000
Opening Inventory	=	Rs. 3,84,000 – Rs. 2,92,000
	=	Rs. 92,000