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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Revenue from Operations ₹9,00,000; Gross Profit 25% on Cost; Operating Expenses ₹45,000. Calculate Operating Profit Ratio.
Since Gross Profit is 25% on Cost, Gross Profit = 25/125 of Revenue.
Gross Profit = 25/125 × 9,00,000 = ₹1,80,000
Operating Profit = Gross Profit − Operating Expenses = 1,80,000 − 45,000 = ₹1,35,000
Operating Profit Ratio = Operating Profit ÷ Revenue from Operations × 100 = 1,35,000 ÷ 9,00,000 × 100 = 15%
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.155 - 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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