Question 106 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 106 Chapter 4 of +2-B

Gross Profit Ratio

106. Calculate Gross Profit Ratio from the following data:
Cash Sales are 20% of Total Sales; Credit Sales are Rs. 5,00,000;
Purchases are Rs. 4,00,000; Excess of Closing Inventory over Opening
Inventory Rs. 25,000.

The solution of Question 106 Chapter 4 of +2-B: -

Credit Sales	=	Rs. 5,00,000
Cash Sales	=	20% of Total Sales
Total Sales	=	Cash Sales + Credit Sales
Total Sales	=	X

 

X	=	Rs.5,00,000+	20x
			100

X -	20x	=	Rs.5,00,000
	100

Rs. 4,00,000	=	X +	25x
			100
80x	=		Rs. 5,00,00,000
X	=		Rs. 5,00,00,000
			80

	=	Rs. 6,25,000
Cost of Goods Sold	=	Purchases – Excess of Closing Stock over Opening Stock
	=	Rs. 4,00,000 – Rs. 25,000
	=	Rs. 3,75,000
Gross Profit	=	Total Sales – Cost of Goods Sold
	=	Rs. 6,25,000 – Rs. 3,75,000
	=	Rs. 2,50,000

 

Revenue from Operations	=	Gross Profit	X	100
		Net Sales

Revenue from Operations	=	Rs. 2,50,000	X	100
		Rs. 6,25,000
	=	40%

 

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication