Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question 121 Chapter 4 of +2-B
Miscellaneous (Analytical Questions)
121. (GP Ratio/Inventory T/0 Ratio/Operating Ratio) From the details given below, calculate the following ratios:
(a) Gross Profit Ratio (b) Inventory Turnover Ratio (c) Operating Ratio
| ₹ | |
| Sales (Revenue from Operation) | 1,50,000 |
| Cost of Goods Sold (i.e. Cost of Revenue from Operation) | 1,20,000 |
| Opening Inventory | 29,000 |
| Closing Inventory | 31,000 |
| Trade Receivable | 16,000 |
| Operating Expenses | 16,000 |
| Net Fixed Assets | 1,10,000 |
|
(a) Gross Profit Ratio |
= | Gross Profit | X | 100 |
| Net Sales | ||||
| = | ₹ 30,000 | X | 100 | |
| ₹ 1,50,000 | ||||
| = | 20% |
|
(b) Stock Turnover Ratio |
= | Cost of goods sold |
| Average Inventory | ||
| = | ₹ 1,20,000 | |
| ₹ 30,000 | ||
| = | 4 times |
|
(c) Operating Ratio |
= | Operating Cost | ||
| Net Sales | ||||
| = | ₹ 1,36,000 | x | 100 | |
| ₹ 1,50,000 | ||||
| = | 90.66% |
Working Notes :-
| Gross Profit | = | Sales – Cost of goods sold |
| = | ₹ 1,50,000 + ₹ 1,20,000 | |
| = | ₹ 30,000 | |
| Average Stock | = | Opening Inventory + Closing Inventory |
| = | ₹ 29,000 + ₹ 31,000 | |
| = | 2 | |
| = | ₹ 30,000 | |
| Operating Cost | = | Cost of goods sold + Operating expenses |
| = | ₹ 1,20,000 + ₹ 16,000 | |
| = | ₹ 1,36,000 |
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 121 Chapter 4 of +2-B - USHA Publication 12 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to USHA Publication Part 2 volume I.
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 121 Chapter 4 of +2-B - USHA Publication 12 Class" instantly.
