Question 111 Chapter 4 of +2-B - USHA Publication 12 Class

Question 111 Chapter 4 of +2-B

Miscellaneous (Analytical Questions)

111. (GP Ratio/NP Ratio/Current Ratio) From the following data, calculate the following Ratios :
(i) Gross profit ratio
(ii) Net profit ratio
(iii) Current ratio
Net sales (Revenue from Operation) ₹ 30,000, cost of sales (i.e. Cost of Revenue from Operation) ₹ 20,000, net profit ₹ 3,000, current assets ₹ 6,000, inventory ₹ 1,000, current liabilities ₹ 2,000, paid up share capital ₹ 5,000, debentures ₹ 2,500.

The solution of Question 111 Chapter 4 of +2-B: - 

(i) Gross Profit Ratio	=	Gross Profit	X	100
		Net Sales
	=	₹ 10,000	X	100
		₹ 30,000
	=	33.33%

 

(ii) Net Profit Ratio	=	Net Profit	X	100
		Net Sales
	=	₹ 3,000	X	100
		₹ 30,000
	=	10%

(iii) Current Ratio	=	Current Assets
		Current Liabilities
	=	₹ 6,000
		₹ 2,000
	=	3: 1

Working Notes :

Gross Profit	=	Net Sales - Cost of goods sold
	=	₹ 30,000 - ₹ 20,000
	=	₹ 10,000