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Question 66 Chapter 14 of Class 12 Part – 2 – 2024
66. (GP Ratio when Credit Sales are given) Calculate the Gross Profit Ratio
| Purchases | ₹ 5,00,000 |
| Credit Sales | ₹ 4,00,000 |
Cash sales 20% of Total sales Revenue from Operation. Excess of closing stock over opening stock ₹ 50,000.
Calculation of Gross Profit Ratio
| Total Revenue from Operation | = | Credit Revenue from Operation + Cash Revenue from Operations |
| Let the Total Revenue from Operations | = | x |
| Cash Revenue from Operations | = | 20% of x |
| Credit Revenue from Operations | = | ₹ 4,00,000 |
| x | = | x | X | ₹ 4,00,000 |
| 5 | ||||
| 5x | = | x + ₹ 20,00,000 | ||
| 5x-x | = | ₹ 20,00,000 | ||
| x | = | ₹ 20,00,000 | ||
| 4 | ||||
| Total Sales | = | ₹ 5,00,000 | ||
| Cash Revenue from Operations | = | 20 | X | ₹ 5,00,000 |
| 100 | ||||
| = | ₹ 1,00,000 |
| Cost of goods sold | = | Purchases – Excess of Closing inventory over opening inventory |
| = | ₹ 5,00,000 - ₹ 50,000 | |
| = | ₹ 4,50,000 | |
| Gross Profit | = | Total Sales - Cost of goods sold |
| = | ₹ 5,00,000 - ₹ 4,50,000 | |
| Purchase | = | ₹ 50,000 |
| Gross Profit Ratio | = | Gross Profit | X | 100 |
| Sales |
| = | ₹ 50,000 | X | ₹ 1,50,000 |
| ₹ 5,00,000 | |||
| = | 10% |
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.
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