12th | Accounting Ratio | Question No. 81 To 85 | Ts Grewal Solution 2023-2024

Question 81:

Cost of Revenue from Operations (Cost of Goods Sold) `5,00,000; Purchases `5,50,000; Opening Inventory `1,00,000.
Calculate Inventory Turnover Ratio.

Answer:

Cost of Goods Sold = Opening Inventory + Purchases − Closing Inventory

5,00,000 = 1,00,000 + 5,50,000 − Closing Inventory

Closing Inventory = 1,50,000

Average Stock

= Opening Stock + Closing Stock/2

=1,00,000+1,50,000/2

= 1,25,000

Inventory tunover ratio

= Cost of goods sold / Average Inventory

=5,00,000/1,25,000

=4 times

Question 82:

Calculate Inventory Turnover Ratio from the following information:
Opening Inventory is `50,000; Purchases `3,90,000; Revenue from Operations, i.e., Net Sales `6,00,000; Gross Profit Ratio 30%.

Answer:

Cost of Goods Sold = Net Sales – Gross Profit
                               = ` 6,00,000 – 30% of ` 6,00,000
                               = ` 6,00,000 – ` 1,80,000 = ` 4,20,000

Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory
` 4,20,000 = ` 50,000 + ` 3,90,000 – Closing Inventory
Closing Inventory = ` 50,000 + ` 3,90,000 – ` 4,20,000
                              = ` 20,000

Average Stock	= Opening Stock + Closing Stock/2 =50,000+20,000/2=35,000

Stock turnover ratio	= Cost of Goods sold / Average Stock
	=4,20,000/35,000
	=12 Times

Question 83:

From the following information, calculate Inventory Turnover Ratio:

Opening Inventory	` 2,00,000	Closing Inventory	` 60,000
Purchases	` 4,60,000	Wages	` 30,000
Carriage Inwards	` 20,000	Freight Outwards	` 37,500

Answers:

Inventory turnover ratio= Cost of revenue from operation/ average inventory

Inventory turnover ratio= 6,50,000 / 1,30,000 = 5 Times

Cost of revenue from operations ( cost of goods sold)	= opening inventory + purchases + carriage inward + wages - closing inventory
	= 2,00,000 + 4,60,000 + 20,000 + 30,000-60,000
	= 6,50,000
Average inventory	= opening inventory + closing inventory / 2
	= 2,00,000 + 60,000 / 2
	= 2,60,000 / 2
	= 1,30,000

Question 84:

Calculate Inventory Turnover Ratio from the following:

	`
Opening Inventory	58,000
Closing Inventory	62,000
Revenue from Operations, i.e., Sales	6,40,000
Gross Profit Ratio 25%

Answer:

Sales = 6,40,000

Gross Profit = 25% on Sales

Gross profit=6,40,000×25/100=1,60,000

Cost of Goods Sold = Total Sales − Gross Profit

Cost of Goods Sold = 6,40,000 – 1,60,000

Cost of Goods Sold = 4,80,000

Average Inventory	= Opening Inventory + Closing Inventory /2 =58,000+62,000/2=60,000

Inventory turnover ratio	= Cost of Goods sold / Average Inventory
	=4,80,000/60,000
	=8 Times