Question 105 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 105 Chapter 4 of +2-B

Question 105 Chapter 4 of +2-B

Gross Profit Ratio

105. Compute Gross Profit Ratio from the following information:
Revenue from Operations, i.e., Net Sales = 4,00,000; Gross Profit 25% on
Cost.

The solution of Question 105 Chapter 4 of +2-B: –

Gross Profit = 25% on Cost
Cost = X

 

Gross Profit = X + 25
100
  =   25x
      100

Sales = Cost + Gross Profit

Rs. 4,00,000 = X + 25x
100
Rs. 4,00,000 x 100 =   125x
Rs. 4,00,00,000 =   125x
X =   4,00,00,000
  125
Cost = Rs. 3,20,000
Gross Profit = Sales – Cost
  = Rs. 4,00,000 – Rs. 3,20,00
  = Rs. 80,000
Revenue from Operations = Gross Profit X 100
Net Sales
Revenue from Operations = Rs. 80,000 X 100
Rs. 4,00,000
  = 20%    

 

Balance Sheet: Meaning, Format & Examples

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 3 min 225x300 - Question 105 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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