We show separately purchases of stock-in-trade and changes in inventory for raw materials in the statement of profit and loss.
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
(₹)
6,00,000
3,00,000
1
50,000
60,000
2
45,000
4,55,000
1,45,000
1,00,000
Particulars
1,25,000
75,000
15,000
30,000