Question 98 Chapter 4 of +2-B
Table of Contents
Working Capital Turnover
98. Equity Share Capital Rs. 15,00,000; Gross Profit on Revenue from
Operations, i.e., Net Sales 33.33%; Cost Revenue from Operations or Cost of Goods Sold Rs. 20,00,000; Current Assets Rs. 10,00,000; Current Liabilities Rs. 2,50,000.
Calculate Working Capital Turnover Ratio.
The solution of Question 98 Chapter 4 of +2-B: –
Net Sales | = | Cost of Goods sold + Gross Profit |
= | Rs. 20,00,000 + 33.33% of Net Sales | |
= | X |
X | = | Rs. 20,00,000 | + | 1x |
3 | ||||
2x | = | Rs. 60,00,000 |
Net Sales | = | Rs. 60,00,000 |
2 | ||
= | Rs. 30,00,000 |
Working Capital | = | Current Assets – Current Liabilities |
= | Rs. 10,00,000 – Rs. 2,50,000 | |
= | Rs. 7,50,000 |
Working Capital Turnover Ratio | = | Cost of Goods Sold |
Working Capital |
= | Rs. 30,00,000 | |
Rs. 7,50,000 | ||
= | 4 Times |
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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