Question 118 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 118 Chapter 4 of +2-B

Operating Ratio

118. Calculate Operating Profit Ratio from the Following:

	Rs.
Revenue from Operations, i.e., Net Sales	5,00,000
Cost of Revenue from Operations (Cost of Goods Sold)	2,00,000
Wages	1,00,000
Office and Administrative Expenses	500,000
Interest on Borrowings	5,000

The solution of Question 118 Chapter 4 of +2-B: -

 

Net Sales	=	Rs. 5,00,000
Cost of Goods Sold	=	Rs. 2,00,000
Operating Expenses	=	Rs. 50,000
Operating Cost	=	Cost of Goods Sold + Operating Expenses
	=	Rs. 2,00,000 + Rs. 50,000
	=	Rs. 2,50,000

 

Operating Ratio	=	Operating Cost	X	100
		Net Sales

Operating Ratio	=	Rs. 2,50,000	X	100
		Rs. 5,00,000
	=	50%

Operating Profit Ratio	=	100 – Operating Ratio
	=	100 – 50%
	=	50%

 

 

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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