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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Revenue from Operations (Net Sales) ₹8,20,000; Return ₹10,000; Cost of Revenue from Operations (Cost of Goods Sold) ₹5,20,000; Operating Expenses ₹2,09,000; Interest on Debentures ₹40,500; Gain (Profit) on Sale of a Fixed Asset ₹81,000. Calculate Net Profit Ratio.
Gross Profit = Net Sales − Cost of Goods Sold = 8,20,000 − 5,20,000 = ₹3,00,000
Net Profit = Gross Profit − Operating Expenses − Interest on Debentures + Gain on Sale of Fixed Asset
= 3,00,000 − 2,09,000 − 40,500 + 81,000 = ₹1,31,500
Net Profit Ratio = Net Profit ÷ Net Sales × 100 = 1,31,500 ÷ 8,20,000 × 100 = 16.04%
(Note: Return is not required separately, since the given Revenue from Operations figure is already Net Sales.)
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.162 - 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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