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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information, calculate Gross Profit Ratio (CBSE 2020 C):
| Revenue from Operations — Cash | 2,00,000 | Carriage Inwards | 8,000 |
| Revenue from Operations — Credit | 8,00,000 | Salaries | 42,000 |
| Purchases — Cash | 40,000 | Decrease in Inventory | 1,22,000 |
| Purchases — Credit | 3,60,000 | Returns Outward | 20,000 |
| Wages | 20,000 |
Total Sales = 2,00,000 + 8,00,000 = ₹10,00,000
Total Purchases = 40,000 + 3,60,000 = ₹4,00,000
Cost of Goods Sold = Purchases − Returns Outward + Carriage Inwards + Wages + Decrease in Inventory
= 4,00,000 − 20,000 + 8,000 + 20,000 + 1,22,000 = ₹5,30,000
Gross Profit = Total Sales − Cost of Goods Sold = 10,00,000 − 5,30,000 = ₹4,70,000
Gross Profit Ratio = Gross Profit ÷ Revenue from Operations × 100 = 4,70,000 ÷ 10,00,000 × 100 = 47%
(Note: Salaries is a non-trading expense and is not required for this calculation.)
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 "T.S. Grewal Class 12 Vol 3 Chapter 4 Q.139 - Accounting Ratios", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Accounting Ratios.
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.
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