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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
(i) Cost of Revenue from Operations (Cost of Goods Sold) ₹2,20,000; Revenue from Operations (Net Sales) ₹3,20,000; Selling Expenses ₹12,000; Office Expenses ₹8,000; Depreciation ₹6,000. Calculate Operating Ratio.
(ii) Revenue from Operations: Cash Sales ₹4,00,000; Credit Sales ₹1,00,000; Gross Profit ₹1,00,000; Office and Selling Expenses ₹50,000. Calculate Operating Ratio.
(i)
Operating Expenses = Selling Expenses + Office Expenses + Depreciation = 12,000 + 8,000 + 6,000 = ₹26,000
Operating Cost = Cost of Goods Sold + Operating Expenses = 2,20,000 + 26,000 = ₹2,46,000
Operating Ratio = 2,46,000 ÷ 3,20,000 × 100 = 76.875%
(ii)
Net Sales = Cash Sales + Credit Sales = 4,00,000 + 1,00,000 = ₹5,00,000
Cost of Goods Sold = Net Sales − Gross Profit = 5,00,000 − 1,00,000 = ₹4,00,000
Operating Expenses = Office and Selling Expenses = ₹50,000
Operating Cost = Cost of Goods Sold + Operating Expenses = 4,00,000 + 50,000 = ₹4,50,000
Operating Ratio = 4,50,000 ÷ 5,00,000 × 100 = 90%
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.152 - 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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