From the following information, calculate Change in Inventory of Stock-in-Trade: Opening and Closing Stock-in-Trade ₹5,00,000 and ₹4,00,000 respectively.

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Solution

NOTES TO ACCOUNTS

Note No.

Particulars

Amount

(Rs)

(a)

Stock-in-Trade

Opening Inventory

5,00,000

Less: Closing Inventory

4,00,000

1,00,000

1,00,000

Rs 1,00,000 will be shown in the Statement of Profit and Loss against Change in Inventories of Stock-in-Trade.

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The difference between opening and closing inventories of finished goods, work-in-progress and stock-in-trade shall be classified as ___

From the following Statement of Profit and Loss for the year ended 31st March, 2019 of Rex Ltd., calculate Inventory Turnover Ratio:

STATEMENT OF PROFIT AND LOSS for the year ended 31st March, 2019
Particulars ulars	Note No.	Amount (₹)
I. Revenue from Operations (Net Sales)		6,00,000
II. Expenses:
(a) Purchases of Stock-in-Trade		3,00,000
(b) Change in Inventory of Stock-in-Trade	1	50,000
(c) Employees Benefit Expenses		60,000
(d) Other Expenses	2	45,000
Total ExpensesTotal Expenses		4,55,000
III. Profit before Tax (I-II)		1,45,000
IV. Less: Tax		45,000
V. Profit after Tax (III-IV)		1,00,000

Particulars	Amount (₹)
I. Change in Inventory of stock-in-Trade
Opening Inventory	1,25,000
Less: Closing Inventory	75,000
	50,000
2. Other Expenses
Carriage Inwards	15,000
Miscellaneous Expenses	30,000
	45,000

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