✓ Board-verified
Accountancy · 2024 · 3 marks
CBSE 2024 · Region 4 · Set 3 · Q32
The average inventory of AB Ltd. is ₹ 1,00,000 and the inventory turnover ratio is 6 times. Calculate the amount of revenue from operations if goods…
The average inventory of AB Ltd. is ₹ $\displaystyle 1,00,000$ and the inventory turnover ratio is $\displaystyle 6$ times. Calculate the amount of revenue from operations if goods are sold at a profit of $\displaystyle 25$% on revenue from operations.
Marking-scheme solution
Revenue from Operations= Cost of Revenue from Operations + Gross Profit
Inventory Turnover Ratio= Cost of Revenue from Operations/ Average inventory
Therefore, $\displaystyle 6$= Cost of Revenue from Operations/$\displaystyle 1,00,000$
Cost of Revenue from Operations= ₹$\displaystyle 6,00,000$
Revenue from Operations= $\displaystyle 6,00,000$ + $\displaystyle 25$% of Revenue from Operations
Revenue from Operations= $\displaystyle 6,00,000$ + Revenue from Operations
$\displaystyle 4$
Revenue from Operations= $\displaystyle 6,00,000$ x $\displaystyle 4$
$\displaystyle 3$
Revenue from Operations= ₹$\displaystyle 8,00,000$
More from Accounting Ratios
- The current ratio of Jack Ltd. is 3·2: 1 and the quick ratio is 1·5: 1. The excess of current assets over quick assets was represented by inventories…2025
- The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If, its working capital turnover ratio is 6 times, its…2023
- Prepare a 'Common S ize Balance Sheet' from the following B alance Sheet of Shree Ltd. as at 31st March, 2022: Balance Sheet of Shree Ltd. as at 31st…2022
- Identify and state the significance of any two ratios that are calculated to measure the efficiency of operations of business based on effective…2023
- From the following information, calculate 'Interest Coverage Ratio': Shareholders' funds 30,00,000 8% Long-term debt 10,00,000 Net profit after tax ₹…2026
- The quick ratio of Theta Ltd. is 0.8:1. Which of the following transactions will result in decrease in this ratio?2026
- Which of the following is not a Solvency Ratio?2023
- Calculate Gross Profit Ratio from the following information: Average Inventory ₹ 1,60,000; Inventory Turnover Ratio 8 times, Average Trade…2023
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.