12th | Accounting Ratios | Question No. 81 To 85 | Ts Grewal Solution 2025-2026

Question 81:

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 82:

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 83:

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

Question 84:

From the following information, calculate Inventory Turnover Ratio:

	₹
Revenue from Operations	16,00,000
Average Inventory	2,20,000
Gross Loss Ratio 5%

Answer:

Cost of Revenue from Operations

=Revenue from Operation+Gross Loss

=16,00,000+80,000

= ₹16,80,000

Inventory Turnover Ratio

= Cost of Revenue from Operations/Average Inventory

= 16,80,000/2,20,000

= 7.64 Times

Question 85:

Revenue from Operations ₹4,00,000; Gross Profit ₹1,00,000; Closing Inventory ₹1,20,000; Excess of Closing Inventory over Opening Inventory ₹40,000. Calculate Inventory Turnover Ratio.

Answer:

Sales	= 4,00,000
Gross Profit	= 1,00,000
Cost of Goods Sold	= Sales − Gross Profit = 4,00,000 − 1,00,000 = 3,00,000
Let Opening Inventory	= x
Closing Inventory	= x + 40,000
1,20,000	= x + 40,000
x	= 80,000
Opening Inventory	= 80,000