Solution of Q 75 Accounting Ratios TS Grewal 2022-23 [CBSE]
Step-by-step solution of Question 75, Chapter 4 Accounting Ratios, TS Grewal Class 12 Accountancy 2022-23 for the CBSE Board.
Question 75
Calculate Inventory Turnover Ratio from the following information:
Opening Inventory ₹ 40,000; Purchases ₹ 3,20,000; and Closing Inventory ₹ 1,20,000.
State, giving reason, which of the following transactions would (i) increase, (ii) decrease, (iii) neither increase nor decrease the Inventory Turnover Ratio:
- (a) Sale of goods for ₹ 40,000 (Cost ₹ 32,000).
- (b) Increase in the value of Closing Inventory by ₹ 40,000.
- (c) Goods purchased for ₹ 80,000.
- (d) Purchases Return ₹ 20,000.
- (e) Goods costing ₹ 10,000 withdrawn for personal use.
- (f) Goods costing ₹ 20,000 distributed as free samples.
Solution
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About this solution
This is Chapter 4 Accounting Ratios of TS Grewal Edition 2022-23.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
We have solved all the practical questions in this book and explained them Step by Step in detail with clear working notes.
Also, we have followed the proper format and workings which are required as per CBSE Guidelines. Just follow our presentation of solutions and score good marks in Accountancy Board Exam.
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