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

Question 71 Chapter 4 of +2-B

Question 71 Chapter 4 of +2-B

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

 

 

Balance Sheet: Meaning, Format & Examples

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

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