Question 75 Chapter 4 of +2-B
Table of Contents
Interest Coverage Ratio
75. 3,00,000 is the Cost of Revenue from Operations Cost of Goods Sold.
Inventory Turnover Ratio 8 times; Inventory, in the beginning, is 2 times more than the inventory at the end. Calculate the value of Opening and Closing Inventories
The solution of Question 75 Chapter 4 of +2-B: –
| Inventory Turnover Ratio | = | Cost of goods sold |
| Average Inventory |
| 8 | = | Rs. 3,00,000 |
| Average Inventory | ||
| Average Inventory | = | Rs. 3,00,000 / 8 |
| Average Inventory | = | Rs. 37,500 |
| Opening Inventory | = | 2x + x |
| Closing Inventory | = | X |
| Average Inventory | = | Opening Inventory + Closing Inventory |
| 2 |
| Rs. 37,500 | = | (2x + X) + X |
| 2 | ||
| 4x | = | Rs. 75,000 |
| X | = | Rs. 75,500 |
| 4 | ||
| = | Rs. 18,750 |
| Opening Inventory | = | Rs. 18,750 |
| Closing Inventory | = | 3 x Rs. 18,750 |
| = | Rs. 56,250 |
Balance Sheet: Meaning, Format & Examples
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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