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Question 99 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 99 Chapter 4 of +2-B
Question No. 99- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 99 Chapter 4 of +2-B

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Working Capital Turnover

99. Gross Profit at 25% on cost; Gross profit Rs. 5,00,000; Equity Share Capital Rs. 10,00,000; Reserves and Surplus Rs. 2,00,000; Long-term Loan Rs. 3,00,000; Fixed Assets (Net) Rs. 10,00,000.
Calculate Working Capital Turnover Ratio.

The solution of Question 99 Chapter 4 of +2-B: –

Gross Profit=25% on Cost
Cost of Goods Sold=X

 

Gross Profit=X+25
3
Gross Profit25x
100
Rs. 5,00,000 x 10025x
XRs.5,00,00,000
25
X=Rs. 20,00,000

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Net Sales=Cost of Goods Sold + Gross Profit
 =Rs. 20,00,000 + Rs. 5,00,000
 =Rs. 25,00,000
Working Capital=Capital Employed – Fixed Assets
 =Rs. 15,00,000 – Rs. 10,00,000
 =Rs. 5,00,000

 

Working Capital Turnover RatioCost of Goods Sold
Working Capital

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 Rs. 25,00,000
Rs. 5,00,000
 =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)

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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