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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
From the following information obtained from the books of Kamal Ltd., calculate (i) Gross Profit Ratio and (ii) Net Profit Ratio (CBSE 2020):
| Revenue from Operations | 2,50,000 |
| Purchases | 1,05,000 |
| Carriage Inwards | 4,000 |
| Salaries | 30,000 |
| Decrease in Inventory | 15,000 |
| Return Outwards | 5,000 |
| Wages | 18,000 |
(i)
Net Purchases = Purchases − Return Outwards = 1,05,000 − 5,000 = ₹1,00,000
Gross Profit = Revenue − Net Purchases − Carriage Inwards − Wages − Decrease in Inventory
= 2,50,000 − 1,00,000 − 4,000 − 18,000 − 15,000 = ₹1,13,000
Gross Profit Ratio = 1,13,000 ÷ 2,50,000 × 100 = 45.20%
(ii)
Net Profit = Gross Profit − Salaries = 1,13,000 − 30,000 = ₹83,000
Net Profit Ratio = 83,000 ÷ 2,50,000 × 100 = 33.20%
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.176 - 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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