Question 74 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 74 Chapter 4 of +2-B

Question 74 Chapter 4 of +2-B

Interest Coverage Ratio

74. Inventory Turnover Ratio 5 times; Cost of Revenue from Operations
(Cost of Goods Sold) Rs. 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.

The solution of Question 74 Chapter 4 of +2-B: –

Inventory Turnover RatioCost of goods sold
Average Inventory
5Rs. 18,90,000
Average Inventory
Average Inventory=Rs. 18,90,000 / 5
Average Inventory=Rs. 3,78,000
Opening Inventory=X
Closing Inventory=2.5x + x

 

Average InventoryOpening Inventory + Closing Inventory
2
Rs. 3,78,000X + (2.5x + X)
2

 

4.5x=Rs. 7,56,000

 

X=Rs. 7,56,000
4.5
 =Rs. 1,68,000

 

Opening Inventory=Rs. 1,68,000
Closing Inventory=3.5 x Rs. 1,68,000
 =Rs. 5,88,000



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)

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2 Book 3 min 225x300 - Question 74 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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