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Question 72 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 72 Chapter 4 of +2-B
Question No. 72- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 72 Chapter 4 of +2-B

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Interest Coverage Ratio

72. From the following information, determine Opening and Closing inventories:
Inventory Turnover Ratio 5 Times, Total sales ₹ 2,00,000, Gross Profit Ratio 25%. Closing Inventory is more by ₹ 4,000 than the Opening Inventory.

The solution of Question 72 Chapter 4 of +2-B: –

Total Sales=Rs. 2,00,000
Gross Profit=25% on Sales
Gross Profit=Rs.2,00,000x25
100
 =Rs. 50,000  
Cost of goods sold=Total Sales – Gross Profit
 =Rs. 2,00,000 – Rs. 50,000
 =Rs. 1,50,000

 

Inventory Turnover RatioCost of goods sold
Average Inventory

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51,50,000
Average Inventory
Average Inventory=Rs. 1,50,000 / 5
 =Rs. 30,000
Opening Inventory=x
Closing Inventory=X + Rs. 4,000

 

Average InventoryOpening Inventory +Closing Inventory
2

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Rs. 30,000X + (X+ Rs. 4,000)
2

 

Rs. 60,000=2x + Rs. 4,000
2x=Rs. 60,000 – Rs. 4,000
x=Rs. 56,000 / 2
x=Rs. 28,000
Opening Inventory=Rs. 28,000
Closing Inventory=Rs. 28,000 + Rs. 4,000
 =Rs. 32,000



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)

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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