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Question No 70 Chapter 7 – UNIMAX Class 12 Part 2 – 2021

Question No 70 Chapter 7 – UNIMAX Class 12 Part 2 – 2021

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Question No 70 Chapter 7 – UNIMAX Class 12 Part 2 – 2021

70. The following are some of the ratios of pionner Ltd.

Inventory turnover ratio4 months
Creditor turnover ratio3 months
Debtors turnover ratio1.5months
Gross profit ratio20 %

The solution of Question No 70 Chapter 7 – UNIMAX Class 12 Part 2 – 2021: –

(i) G.P. ratio=G.P.X100
Net sales
40 %=4,00,000X100
Net sales
Net sales=4,00,000X100
40
 =₹ 10,00,000  
(ii) G.P=Net sales – C.O.G.S
4,00,000=10,00,000 – 4,00,000
C.O.G.S.=10,00,000 – 4,00,000
 =6,00,000
(iii) Inventory turnover ratio=12 months
STR
4=12
STR
Stock turnover ratio=12=3times 
4
 =C.O.G.S.
Average Stock

3

=6,00,000
Average Stock

Average Stock

=6,00,000
3

 

=₹ 2,00,000
Let opening stock=x
Let closing stock= x + 50,000
Average stock=Opening stock+closing stock 
2
 =x + x + 50,000
2
4,00,000=2x + 50,000
2x=4,00,000 – 50,000
 =3,50,000
2
 =₹ 1,75,000
Closing stock=x + 50,000
 =1,75,000 + 50,000
Closing stock=2,25,000 Ans.
(iv) C.O.G.S=opening stock + net purchases + direct expenses – closing stocks
6,00,000== 1,75,000 + purchases + nil – 2,25,000
6,00,000=purchases – 50,000
Purchases=6,00,000 + 50,000
Purchases=6,50,000 Ans.

(v) Inventory turnover ratio

=12 months
CTR

3

=12
CTR
Creditors turnover ratio=12=4times
3

 Creditors turnover ratio

=net credit purchases
creditors+bills payable 

4

=6,50,000
Creditors +B/P

Creditors +B/P

=6,50,000
4
Creditors + 25,000= 1,62,500
Creditors= 1,62,500 – 25,000
Sundry creditors=1,37,500 Ans
(vi) Average collection period=12 months
DTR
1.5=12
DTR
Debtors turnover ratio=12
15
 =8 times
Debtors turnover ratio=Net Credit Sales
Debtors +B/R
8=10,00,000
Debtors +B/R
Debtors +B/R=10,00,000
8
Debtors + 40,000=1,25,000
Debtors=1,25,000 – 40,000
Sundry creditors=₹ 85,000 Ans

End of Solution

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Question No 12 Chapter 7 – UNIMAX Class 12 Part 2 – 2021

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Punjab School Education Board (PSEB) Solutions of Usha Publication.

If you’re a student enrolled in the Punjab School Education Board Class 12, exploring a wide range of books to cover the syllabus thoroughly is essential. While the prescribed textbooks are undoubtedly valuable, supplementing your studies with additional resources can enhance your understanding and knowledge. Consider checking out other books that align with the curriculum, offering different perspectives and insights on the subjects you’re studying. These supplementary materials can provide you with alternative explanations, practice questions, and examples that may aid in clarifying complex concepts. Moreover, exploring diverse sources can expose you to various writing styles and viewpoints, fostering a broader understanding of the subjects. So, seize the opportunity to expand your learning by delving into other books that can complement your studies and contribute to your academic growth.

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