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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Calculate Operating Profit Ratio from the following information:
| Opening Inventory | 1,00,000 | Closing Inventory | 1,50,000 |
| Purchases | 10,00,000 | Loss by Fire | 20,000 |
| Revenue from Operations (Net Sales) | 14,70,000 | Dividend Received | 30,000 |
| Administrative and Selling Expenses | 1,70,000 |
Cost of Goods Sold = Opening Inventory + Purchases − Closing Inventory
= 1,00,000 + 10,00,000 − 1,50,000 = ₹9,50,000
Operating Expenses = Administrative and Selling Expenses = ₹1,70,000
Operating Cost = Cost of Goods Sold + Operating Expenses = 9,50,000 + 1,70,000 = ₹11,20,000
Operating Ratio = 11,20,000 ÷ 14,70,000 × 100 = 76.19%
Operating Profit Ratio = 100 − Operating Ratio = 100 − 76.19 = 23.81%
(Note: Loss by Fire and Dividend Received are non-operating items and are excluded.)
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.154 - 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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