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Question 78 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 78 Chapter 4 of +2-B
Question No. 78- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 78 Chapter 4 of +2-B

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Interest Coverage Ratio

78. From the following Statement of Profit and Loss for the year ended 31st
March 2019 of Rex Ltd., calculate Inventory Turnover Ratio:

Statement of Profit and Loss for the year ended 31st March 2019
ParticularsNote No.Amount
I. Revenue from Operations (Net Sales) 6,00,000
II. Expenses:  
(a) Purchases of Stock-in-Trade 3,00,000
(b) Change in Inventory of Stock-in-Trade150,000
(c) Employees Benefit Expenses 60,000
(d) Other Expenses245,000
Total Expenses 4,55,000
III. Profit before Tax (I – II) 1,45,000
IV. Less: Tax 45,000
V. Profit after Tax (III – IV) 1,00,000

Notes to Accounts:-

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ParticularsRs.
I. Change in Inventory of stock-in-Trade 
Opening Inventory 1,25,000
Less: Closing Inventory75,000
 50,000
2. Other Expenses60,000
Carriage Inwards15,000
Miscellaneous Expenses30,000
 45,000

 

The solution of Question 78 Chapter 4 of +2-B: –

 

Cost of Goods Sold=Opening Inventory+ Purchases +
Direct Expenses – Closing Inventory
 =Rs. 1,25,000 + Rs. 3,00,000 +
Rs. 15,000 – Rs. 75,000
 =Rs. 3,65,000

 

Average InventoryOpening Inventory + Closing Inventory
2
Inventory Turnover RatioRs. 1,25,000 + Rs. 75,000
2
 =Rs. 1,00,000
Inventory Turnover RatioCost of Goods Sold
Average Inventory
Inventory Turnover RatioRs. 3,65,000
Rs. 1,00,000
 =3.65 Times

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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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