working capital turnover ratio class 12

Its working capital turnover ratio will be. Meaning of Working Capital Turnover Ratio.

Ncert Solutions For Class 12 Accountancy Part Ii Chapter 5 Accounting Ratios

Working capital turnover ratio Classification of Ratios Question 12.

. 200000 and general reserve Rs. Ratio It is an arithmetical expression of relationship between two related or interdependent items. I Compute debtors turnover ratio from the following information Revenue from operations Total sales Rs 520000 cash revenue from operations 60 of the credit revenue from operations closing debtors Rs 80000 opening debtors are 34th of closing debtors.

A Liquidity Ratios 1. A 11 b 0 c 15 b Cant say. 200000 and general reserve Rs.

NCERT Solutions for Class 12 Commerce Accountancy Chapter 5 Accounting Ratios are provided here with simple step-by-step explanations. MCQ Questions for Class 12 Accounting Ratios. Working Note-Net Revenue from Operations Rs.

Trade receivable turnover ratio 5 times average trade receivables Rs. It shows the number of times a unit of Rupee invested in working capital produces sales. 700000 Working Capital Turnover Ratio 56 times So the Working Capital Turnover Ratio is 56 times.

100000 and total assets RS 2100000. Accounting Ratios It is a mathematical expression that shows the relationship between various items or groups of items shown in financial statements. Working capital turnover ratio 1850000370000.

Compute the Working Capital Turnover Ratio of the company. A firms current assets are 360000 current ratio is 3. And if Working capital turnover ratio Ans.

Trade Payables Turnover Ratio Rs. Accounting Ratios Class 12 Accountancy MCQs Pdf. Working capital turnover ratio 5 Times Working note 1.

It is a relationship between working capital and revenue from operations. Exercise Q 103 Page 104. When ratios are calculated on.

Accounting Ratios CBSE Notes for Class 12 Accountancy Topic 1. 300000 4 times. I Operating profit ratio.

Take the Next Step to Invest. The working capital turnover ratio is thus 12000000 2000000 60. The formula for determining the working capital turnover ratio is as indicated below.

A 3 times b 5 times c 8 times d 4 times. Trade Receivables Turnover Ratio. Working capital turnover ratio Sales or Cost of Goods Sold Working Capital Working capital turnover ratio 2013 Sales or Cost of Goods Sold 201310747000 Working Capital 2013467000 Sales or Cost of Goods Sold 2013 10747000 467000 Sales or Cost.

This means that every dollar of working capital produces 6 in revenue. Current Ratio 25 Quick Ratio 15 Working Capital 60000. Calculation of Working Capital Turnover Ratio-Working Capital Turnover Ratio Net Revenue from operations Working Capital Working Capital Turnover Ratio Rs.

70000 2 Rs. A Inventory turnover ratio and working capital turnover ratio b Liquid Ratio and Operating Ratio c Liquid Ratio and Current Ratio d Gross Profit Margin and Net Profit Margin. Average Trade Receivables 9 00000.

Working capital Turnover ratio Net salesWorking capital. Working capital Current assets - Current liabilities Working capital 550000 - 180000 Working capital 370000 Working note 2. If share capital Rs.

Average Trade Payables Creditors in the beginning Bills payables in the beginning Creditors at the end Bills payables at the end 2. The best app for CBSE students now provides accounting for partnership firms fundamentals class 12 Notes latest chapter wise notes for quick preparation of CBSE board exams and school-based annual examinations. Two basic measures of liquidity are.

Current assets Cash Bank Trade receivable Current assets 200000 300000 50000 Current assets 550000. MCQ Questions Class 12 Accountancy Accounting Ratios Question. 60000Calculate net credit revenue from operations.

This concludes our article on the topic of Working Capital Turnover Ratio which is an important topic in Class 12 Accountancy for. Working Capital Current Assets Current Liabilities 18 00000 5 00000 13 00000. Working capital turnover ratio 1850000370000.

Putting the values in the formula of working capital turnover ratio we get. Net Credit Sales 18 00000. Accounting Ratios class 12 Notes Accountancy in PDF are available for free download in myCBSEguide mobile app.

100000 and total assets RS 2100000. CBSE Class 12 Accountancy Chapter 13 Important Questions Free PDF Download. We now look at the meaning and characteristics of working capital turnover ratio as mentioned in the chapter on accounting ratios class 12.

A 15000. Cash Sales 130000 Credit Sales 380000 Sales Return 10000 Liquid Assets. Ii Inventory Turnover Ratio.

A Inventory turnover and Current ratio B Current ratio and Quick ratio C Gross Profit ratio and Operating ratio. Working capital Turnover ratio Net Sales Working Capital 420000 60000 7. These solutions for Accounting Ratios are extremely popular among Class 12 Commerce students for Accountancy Accounting Ratios Solutions come handy for quickly completing your homework and preparing for exams.

If share capital Rs. Iii Return on Investment. From the following information calculate the following ratios.

From the following information calculate the working capital turnover ratio. Revenue from the operation for the year were RS. Compute Working Capital Turnover Ratio from the following information.

500000 reserve surplus Rs. 500000 reserve surplus Rs. Ans b Given that.

This means that for every 1 spent on the business it is providing net sales of 7. Compute Gross Profit Ratio from the following information. Cost of revenue from operations is 1200000.

Working capital turnover ratio 5 Times. The value of current liabilities will be. Multiple Choice Questions Select the best alternate and check your answer with the answers given at the end of the book.

Net sales Total sales - sales return 130000 380000 10000 500000. Ans d What will be the current ratio of a company whose net working capital is Zero.

Important Questions For Cbse Class 12 Accountancy Classification Of Accounting Ratios