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 Ratio Cost of goods sold
Average Inventory
5 Rs. 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 Inventory Opening Inventory + Closing Inventory
2
Rs. 3,78,000 X + (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)

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

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