Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 108 Chapter 4 of +2-B
Gross Profit Ratio
108. Calculate Gross Profit Ratio from the following data:
Average Inventory Rs. 3,20,000; Inventory Turnover Ratio 8 Times;
Average Trade Receivables Rs. 4,00,000; Trade Receivables Turnover
Ratio 6 Times; Cash Sales 25% of Net Sales.
| Inventory Turnover Ratio | = | 8 Times |
| Average Inventory | = | Rs 3,20,000 |
| Inventory Turnover Ratio | = | Cost of Goods Sold |
| Average Inventory |
| 8 | = | Cost of Goods Sold |
| Rs. 3,20,000 | ||
| = | 3,20,000 x 8 | |
| Cost of Goods Sold | = | Rs. 25,60,000 |
| Trade Receivables Turnover Ratio | = | 6 Times |
| Average Trade Receivables | = | Rs. 4,00,000 |
| Trade Receivables Turnover Ratio | = | Net Credit Sales |
| Average Trade Receivable |
| 6 | = | Net Credit Sales |
| Rs. 4,00,000 | ||
| Net Credit Sales | = | Rs. 4,00,000 x 6 |
| = | Rs. 24,00,000 | |
| Total Sales | = | Cash Sales + Credit Sales |
| Total Sales | = | 25% of Total Sales + Credit Sales |
| 75% of Total Sales | = | Rs 24,00,000 |
| Total Sales | = | Rs. 24,00,000 |
| 75% | ||
| = | Rs 32,00,000 | |
| Gross Profit | = | Total Sales – Cost of Goods Sold |
| = | Rs. 32,00,000 – Rs. 25,60,000 | |
| = | Rs. 6,40,000 |
| Revenue from Operations | = | Gross Profit | X | 100 |
| Net Sales |
| Revenue from Operations | = | Rs. 6,40,000 | X | 100 |
| Rs.32,00,000 | ||||
| = | 20% |
https://tutorstips.com/balance-sheet/
Thanks, Please Like and share with your friends
Comment if you have any question.
Also, Check out the solved question of previous Chapters: -
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Question 108 Chapter 4 of +2-B - T.S. Grewal 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - B - T.S. Grewal - XII.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question 108 Chapter 4 of +2-B - T.S. Grewal 12 Class" instantly.
