Home
Class 12
ACCOUNTS
Current Assets ₹ 15,00,000, Credit sale ...

Current Assets ₹ 15,00,000, Credit sale ₹ 42,50,000 , Cash sales ₹ 3,75,000, Sales Return ₹ 1,25,000. Calculate Current Assets Turnover Ratio.

Text Solution

Verified by Experts

Current Assets Turnover Ratio `=("Revenue from Operations")/("Current Assets ")= ("₹ 45,00,000")/("₹ 15,00,000")`= 3 Times .
Revenue from Operations = Cash sales + Credit Sales -Sales Returns
=₹ 3,75,000+₹ 42,50,000-₹ 1,25,000= ₹ 45,00,000.
Promotional Banner

Topper's Solved these Questions

  • PRACTICE WORK

    TS GREWAL|Exercise Exercies|7 Videos

  • PRACTICE WORK

    TS GREWAL|Exercise viva question|180 Videos

  • PRACTICE ASSIGNMENT

    TS GREWAL|Exercise Issue and Redemption of Debentures|8 Videos

  • SCANNER

    TS GREWAL|Exercise Cash Flow Statement|20 Videos
TS GREWAL-PRACTICE WORK-viva question
  1. Current Assets ₹ 15,00,000, Credit sale ₹ 42,50,000 , Cash sales ₹ 3,7...

    Text Solution

    |

  2. What was the reason for Ms. Parul and Ms. Aruna to become partners in ...

    Text Solution

    |

  3. Why is it necessary for Ms. Parul and Ms. Aruna to enter into partners...

    Text Solution

    |

  4. Why is it necessary to prepare Trial Balance ?

    Text Solution

    |

  5. Was the bank balance reconciled?

    Text Solution

    |

  6. What does a Trading Account show?

    Text Solution

    |

  7. What does Profit and Loss Account show?

    Text Solution

    |

  8. Give two characteristics of a Balance Sheet

    Text Solution

    |

  9. What do youunderstandby 'Direct Expenses?

    Text Solution

    |

  10. How is Closing Stock (inventory) valued?

    Text Solution

    |

  11. Why do we recognise 'income earned but not received' and 'expenses inc...

    Text Solution

    |

  12. What can be the reasons for a firm earning higher Gross Profit than th...

    Text Solution

    |

  13. Operating Ratio is lower than the industry standard. Is it good for th...

    Text Solution

    |

  14. Do you think lower Inventory Turnover Ratio is good for the firm?

    Text Solution

    |

  15. Why do you think lower Trade Payables Turnover Ratio is not good for t...

    Text Solution

    |

  16. Working Capital Turnover Ratio of the firm is 0.94 against industry st...

    Text Solution

    |

  17. The firm ha s hight Current Ratio. What does it indicate ?

    Text Solution

    |

  18. Which areas , according to you are the weak areas of the firm ?

    Text Solution

    |

  19. What does Operating Ratio of 65.40 % indicates against Industry Standa...

    Text Solution

    |

  20. Gross Profit Ratio is 46.72% against Industry Standard of 40%. What do...

    Text Solution

    |

  21. Net Profit Ratio is 33.50% against industry standard 27.5%. What does ...

    Text Solution

    |