Q. W Ltd issued 10,000 equity shares of Rs 10/- each at a premium of Rs 2 per share, payable Rs 5 on
application, Rs 6 on allotment(including premium),and balance on first &final call. Applications received for 25,000 shares. 10,000 applications rejected and refunded. Excess amount adjusted sums due on allotment. Final call was not yet made. Record necessary journal entries in the books of W Ltd.
please write with pen and paper
Answers
Answer:
Inventory Turnover Ratio :
\sf{\longrightarrow{\dfrac{Cost \: of \: Revenue \: from \: Operation}{Average \: Inventory}}}⟶
AverageInventory
CostofRevenuefromOperation
\sf{\longrightarrow{\dfrac{Cost \: of \: Revenue \: from \: Operation}{ \frac{Ope.ning \: Inventory \: + \: Closing \: Inventory}{2}}}}⟶
2
Ope.ningInventory+ClosingInventory
CostofRevenuefromOperation
\sf{\longrightarrow\:4\:=\:{\dfrac{7,20,000}{Average \: Inventory}}}⟶4=
AverageInventory
7,20,000
Average Inventory = 1,80,000
★ Average Inventory =
\sf{\longrightarrow{\dfrac{Ope.ning \: Inventory \: + \: Closing \: Inventory}{2}}}⟶
2
Ope.ningInventory+ClosingInventory
\sf{\longrightarrow\:1,80,000\:=\:{\dfrac{Ope.ning \: Inventory \: + \: Closing \: Inventory}{2}}}⟶1,80,000=
2
Ope.ningInventory+ClosingInventory
Let,
Opening Inventory = x
Closing Inventory = 80% of x
\sf{\longrightarrow\:1,80,000\:=\:{\dfrac{x \: + \: (80\% \:of\:x)}{2}}}⟶1,80,000=
2
x+(80%ofx)
\longrightarrow⟶ 3,60,000 = x + 0.8x
\longrightarrow⟶ 3,60,000 = 1.8x
\longrightarrow⟶ x = 3,60,000/1.8
\longrightarrow⟶ x = 2,00,000
Opening Inventory = Rs. 2,00,000
• Closing Inventory = 2,00,000 × (80/100)
\longrightarrow⟶ 1,60,000
Closing Inventory = Rs. 1,60,000
Therefore,
Opening Inventory = Rs. 2,00,000
Closing Inventory = Rs. 1,60,000