# 12th | Ts grewal 2021-2022 Question 81 to 85 | ch:4 Accounting Ratios

#### Question 81:

From the following information, calculate value of Opening Inventory:

 Closing Inventory = ` 68,000 Total Sales = ` 4,80,000 (including Cash Sales  ` 1,20,000) Total Purchases = ` 3,60,000 (including Credit Purchases  ` 2,39,200)

Goods are sold at a profit of 25% on cost.

Let Cost of Goods Sold be = x

Gross profit=X×25/100=25X/100

Cost of goods sold = Sales – Gross profit

Or X=4,80,000-25X/100

Or X+25X/100=4,80,000

Or 125X/100=4,80,000

X=4,80,000×100/125=3,84,000

Cost of Goods Sold = x =  ` 3,84,000

Cost of Goods Sold = Opening Inventory (Stock) + Purchases − Closing Inventory (Stock)

3,84,000 = Opening Inventory + 3,60,000 − 68,000

Opening Inventory = 3,84,000 − 2,92,000 =  ` 92,000

#### From the following information, determine Opening and Closing inventories: Inventory Turnover Ratio 5 Times, Total sales `2,00,000, Gross Profit Ratio 25%. Closing Inventory is more by `4,000 than the Opening Inventory.

Sales = 2,00,000

Gross Profit = 25% on Sales

Gross Profit = 2,00,000×25/100=50,000

Cost of Goods Sold = Total Sales − Gross Profit

= 2,00,000 − 50,000 = 1,50,000

Inventory tunover ratio= Cost of goods sold / Average Stock

5=1,50,000/ Inventory tunover

Inventory tunover=30,000

Let Opening Inventory = x

Closing Inventory = x + 4,000

 Average Stock = Opening Stock + Closing Stock

30,000=X+X+4,000/2

Or, 60,000=2X+4,000

Or, X=28,000

Opening Inventory = x =  ` 28,000

Closing Inventory = x + 4,000 = 28,000 + 4,000 =  ` 32,000

#### Question 83:

Inventory Turnover Ratio 5 times; Cost of Revenue from Operations (Cost of Goods Sold)  ` 18,90,000. Calculate Opening Inventory and Closing Inventory if Inventory at the end is 2.5 times more than that in the beginning.

Inventory tunover ratio= Cost of goods sold / Average Stock

5=18,90,000/Average Inventory

Average Inventory=3,78,000

Let Opening Inventory = x

Closing Inventory = 2.5x + x = 3.5 x

Average Inventory = Opening Inventory + Closing Inventory /2

3,78,000=X+3.5X/2

Or, 4.5X =7,56,000

Or,  X =1,68,000

Opening Inventory = x =  ` 1,68,000

Closing Inventory = 3.5 x = 3.5 × 1,68,000 =  ` 5,88,000

#### Question 84:

` 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold).
Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories

Inventory tunover ratio= Cost of goods sold / Average Inventory

8=3,00,000/Average Inventory

Average Inventory=37,500

Let Closing Inventory = x

Opening Inventory = 2x + x = 3x

Average Inventory = Opening Inventory + Closing Inventory /2

37,500=3.5X+X/2

Or, 4X =75,000

Or,  X =18,750

Closing Inventory = x =  ` 18,750

Opening Inventory = 3x = 3 ×18,750 =  ` 56,250

#### Question 85:

 Credit Revenue from Operations, i.e., Net Credit Sales for the year 1,20,000 Debtors 12,000 Billls Receivable 8,000