Accountancy, asked by wahedrahaman1200, 1 month ago

If average inventory is rs125000 and closing inventory rs 10000 less then opening inventory then value of closing inventory Will ve

Answers

Answered by fatimasehrish2010
0

Answer:

Correct option is

C

4 times

Stock turnover ratio = Cost of goods sold/ average inventory

Cost of goods sold = Rs.2,20,000

Average Inventory= [Opening inventory + Closing Inventory]/2

= [50000+60000] / 2

= Rs.55000

Now,

Stock turnover ratio = 220000/55000

= 4 times.

Answered by Sauron
13

Answer:

Value of Closing Inventory will be Rs. 1,20,000

Explanation:

Average Inventory = Rs. 1,25,000

Closing Inventory = Rs. 10,000 less than Opening Inventory

Value of Closing Inventory = ??

Let,

Opening Inventory = x

Closing Inventory = x - 10,000

Average Inventory = Rs. 1,25,000

\sf{Average \:Inventory\: = \: \dfrac{ Ope.ning \: Inventory\: + \: Closing \: Inventory}{2}}

1,25,000\: = \: \dfrac{ x \: + \: (x \:  -  \: 10,000)}{2}

⇒ 1,25,000 × 2 = x + (x - 10,000)

⇒ 2,50,000 = x + (x - 10,000)

⇒ 2,50,000 = 2x - 10,000

⇒ 2,50,000 + 10,000 = 2x

⇒ 2,60,000 = 2x

⇒ x = 2,60,000/2

x = 1,30,000

Opening Inventory = Rs. 1,30,000

Closing Inventory = x - 10,000

⇒ 1,30,000 - 10,000

⇒ 1,20,000

Closing Inventory = Rs. 1,20,000

Therefore, Value of Closing Inventory will be Rs. 1,20,000

Similar questions