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Inventory Turnover… (Class 12 Accountancy SQP 2025-26, Q28a)

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AccountancyCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2025-26: question 28(a)

From the official CBSE sample question paper for 2025-26, section B-I, question 28(a), for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q28(a) · 1 mark · MCQAccounting Ratios

Inventory Turnover Ratio of company was 5 times. The firm had Revenue from operations of ₹ 5,00,000 and Gross Profit was 25% of Cost of Revenue from Operations. Determine the amount of Opening Inventory if Closing Inventory was ₹ 60,000.

  1. (A)₹ 80,000
  2. (B)₹ 60,000
  3. (C)₹ 1,00,000
  4. (D)₹ 50,000

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Turn the gross profit on cost into the cost of revenue from operations.

Hint 2

Inventory turnover = cost of revenue from operations / average inventory.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Gross profit is 25% of cost, so revenue = cost × 125/100 and cost of revenue from operations = 5,00,000 × 100/125 = ₹ 4,00,000.

  2. Average inventory = 4,00,000 / 5 = ₹ 80,000. Opening + closing = ₹ 1,60,000, so opening = 1,60,000 − 60,000 = ₹ 1,00,000. Option (C).

    1 mark

Answer: (C) ₹ 1,00,000

Where the marks are

  • Cost ₹ 4,00,000, average inventory ₹ 80,000, opening ₹ 1,00,000 (1 mark)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.