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Question 67 Chapter 14 of Class 12 Part – 2 – 2024
67. (GP Ratio when Inventory T/O Ratio & Trade Receivable T/O Ratio are given) Calculate the Gross Profit Ratio from the following data.
| Average Inventory | ₹ 1,00,000 |
| Inventory Turnover Trade Receivable | 5 times |
| Average Trade Receivable | ₹ 2,00,000 |
| Trade Receivable turnover ratio | 5 times |
Cash Sales (Revenue from Operation) 20% of Net Sales.
| Cost of goods sold | = | Average Inventory x Inventory Turnover Ratio |
| = | ₹ 1,00,000 x 5 | |
| = | ₹ 5,00,000 | |
| Net Credit Sales | = | Average Trade Receivable x Trade Receivable turnover ratio |
| Sales | = | ₹ 2,00,000 x 5 |
| = | ₹ 10,00,000 |
| Total Sales | = | 100 | X | ₹ 10,00,000 |
| 80 | ||||
| = | ₹ 12,50,000 | |||
| Gross Profit | = | Net Sales – Cost of goods sold | ||
| = | ₹ 12,50,000 - ₹ 5,00,000 | |||
| = | ₹ 7,50,000 |
| Gross Profit Ratio | = | Gross Profit | X | 100 |
| Sales |
| = | ₹ 7,50,000 | X | ₹ 1,50,000 |
| ₹ 12,50,000 | |||
| = | 60% |
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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