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VDO+ Tag:Question 22 Chapter 14 of Class 12 Part – 2 – 2024
I. Liquidity Ratios
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Video Tag:22. (Calculation of Current assets) A company’s inventory turnover id 5 times. Inventory at the end
of the year is ₹ 4,000 more than the inventory at the beginning of the year. Sales (Revenue from Operation) during the year (all credit) were ₹ 3,00,000. The rate of gross profit on the sale is 20%. Current liabilities at the end of the year were ₹ 60,000. The quick ratio is 1: 1.
Calculate the Current assets at the end of the year.
The solution of Question 22 Chapter 14 of Class 12 Part – 2 – 2024: –
| Current Assets | = | Quick Assets + Closing inventory |
| Current Liabilities | = | ₹ 60,000 |
| Quick ratio | = | 1 : 1 |
| Quick Assets | = | ₹ 60,000 |
| Inventory turnover ratio | = | 5 times |
| Sales | = | ₹ 3,00,000 |
| Rate of gross profit on sale | = | 20% |
| Cost of goods sold | = | ₹ 2,40,000 |
| Inventory turnover ratio | = | Cost of goods sold |
| Average Inventory |
| 5 times | = | Cost of goods sold |
| Average Inventory |
| Let assume that opening inventory | = | x |
| = | X + ₹ 4,000 |
| 5 times | = | ₹ 2,40,000 |
| x + (x + ₹ 4,000) | ||
| 2 |
| 5 times | = | ₹ 2,40,000 |
| 2x + ₹ 4,000) | ||
| 2 |
| Inventory turnover ratio | = | ₹ 2,40,000 |
| x + ₹ 2,000) |
| 5 (x + ₹ 2,000) | = | ₹ 2,40,000 |
| 5x + ₹10,000 | = | ₹ 2,40,000 |
| 5x + ₹10,000 | = | ₹ 2,40,000 – ₹ 10,000 |
| 5x | = | ₹ 2,30,000 |
| X | = | ₹ 2,30,000 |
| 5 |
| x | = | ₹ 46,000 |
| Opening Inventory | = | ₹ 46,000 |
| Closing Inventory | = | ₹ 46,000 + ₹ 4,000 |
| Closing Inventory | = | ₹ 50,000 |
| New Current Assets | = | Quick Assets + Closing Inventory |
| = | ₹ 60,000 + ₹ 50,000 | |
| = | ₹ 1,10,000 |
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication