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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Revenue from Operations ₹4,00,000; Gross Profit Ratio 25%; Operating Ratio 90%. Non-operating Expenses ₹2,000; Non-operating Income ₹22,000. Calculate Net Profit Ratio.
Operating Profit Ratio = 100 − Operating Ratio = 100 − 90 = 10%
Operating Profit = 10% of 4,00,000 = ₹40,000
Net Profit = Operating Profit + Non-operating Income − Non-operating Expenses = 40,000 + 22,000 − 2,000 = ₹60,000
Net Profit Ratio = Net Profit ÷ Revenue from Operations × 100 = 60,000 ÷ 4,00,000 × 100 = 15%
(Note: Gross Profit Ratio is not required, since Operating Ratio directly gives Operating Profit.)
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.163 - 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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