Question 97 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 97 Chapter 4 of +2-B

Question 97 Chapter 4 of +2-B

Working Capital Turnover

97. Revenue from Operations: Cash Sales Rs. 5,00,000; Credit Sales Rs.
6,00,000; Sales Return 1,00,000. Current Assets 3,00,000; Current Liabilities 1,00,000. Calculate Working Capital Turnover Ratio.

The solution of Question 97 Chapter 4 of +2-B: –

Net Sales = Cash Sales + Credit Sales − Sales Returns
  = Rs. 5,00,000 + Rs. 6,00,000– Rs. 1,00,000
  = Rs. 10,00,000
Working Capital = Current Assets – Current Liabilities
  = Rs. 3,00,000 – Rs. 1,00,000
  = Rs. 2,00,000

 

Working Capital Turnover Ratio Cost of Goods Sold
Working Capital
  Rs. 10,00,000
Rs. 2,00,000
  = 5 Times

 

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

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