Question 75 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 75 Chapter 4 of +2-B

Question 75 Chapter 4 of +2-B

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

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