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Accountancy · 2024 · 3 marks
CBSE 2024 · Region 2 · Set 2 · Q32
Calculate the 'Inventory Turnover Ratio' from the following information: Revenue from operations ₹ 15,00,000 Gross profit 20% Opening inventory ₹…
Calculate the 'Inventory Turnover Ratio' from the following information : Revenue from operations ₹ $\displaystyle 15,00,000$ Gross profit $\displaystyle 20$% Opening inventory ₹ $\displaystyle 2,00,000$ Purchases ₹ $\displaystyle 18,00,000$
Marking-scheme solution
Inventor Turnover Ratio = Cost of revenue from operations
Average Inventory
Cost of revenue from operations = Revenue from operations- Gross Profit
= ₹$\displaystyle 15,00,000$ - $\displaystyle 20$% of ₹$\displaystyle 15,00,000$
= ₹$\displaystyle 15,00,000$ - ₹$\displaystyle 3,00,000$
= ₹$\displaystyle 12,00,000$
Cost of revenue from operations = Opening inventory + Purchases – Closing inventory
$\displaystyle 12,00,000$ = $\displaystyle 2,00,000$ + $\displaystyle 18,00,000$ – Closing inventory
Closing inventory = ₹$\displaystyle 8,00,000$
Average Inventory = Opening inventory + Closing inventory
$\displaystyle 2$
= ₹$\displaystyle 2,00,000$ + ₹$\displaystyle 8,00,000$ = ₹$\displaystyle 10,00,000$ = ₹$\displaystyle 5,00,000$
$\displaystyle 2$ $\displaystyle 2$
Inventory Turnover Ratio= $\displaystyle 12,00,000$ / $\displaystyle 5,00,000$ = $\displaystyle 2.4$ times
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.