Question

calculate (i) stock turnover ratio (ii) operating ratio (opening stock = 28000, closing stock = 22000, purchase = 46000, sales = 90000, sales return = 10000, carriage inward= 4000, office expenses=4000, selling & dist. Expenses = 2000
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Answer 1

Answer:

fire occurred on 31/03/2014 in the premises of a firm and stock was destroyed with the exception of the values of Rs 1,24,080 following particulars is available from the books of account of the firm. stock on 31/12/2013 Rs 1,80,000,Purchases to the date of fire Rs 7,80,000,Sales to the date of fire Rs 5,40,000,Carriage inwards Rs 24,000,Commission paid on purchase manager 2%,Rate of gross profit on cost 50% and calculate loss of stock and amount of= 28000, closing stock = 22000, purchase = 46000, sales = 90000, sales return = 10000, carriage inward= 4000, office expenses=4000, selling & dist. Expenses = 2000