Question 125 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 125 Chapter 4 of +2-B

Net Profit Ratio

125. Revenue from Operations, i.e., Net Sales Rs. 8,20,000; Return 10,000;
Cost of Revenue from Operations Cost of Goods Sold 5,20,000; Operating
Expenses 2,09,000; Interest on Debentures 40,500; Gain Profit on Sale of
a Fixed Asset 81,000. Calculate Net Profit Ratio.

 

The solution of Question 125 Chapter 4 of +2-B: -

 

Net Sales	=	Rs. 8,20,000
Gross Profit	=	Net Sales - Cost of Goods Sold
	=	Rs. 8,20,000 – Rs. 5,20,000
	=	Rs. 3,00,000
Net Profit	=	Gross Profit - Operating Expenses - Interest on Debentures + Profit on Sale of Fixed Asset
	=	Rs. 3,00,000 – Rs. 2,09,000 – Rs. 40,500 – 81,000
	=	Rs. 1,31,500

 

Net Profit Ratio	=	Net Profit	X	100
		Net Sales

Net Profit Ratio	=	Rs. 1,31,500	X	100
		Rs. 8,20,000
	=	16.04%

 

 

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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