Question 106 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 106 Chapter 4 of +2-B

Question 106 Chapter 4 of +2-B

Gross Profit Ratio

106. Calculate Gross Profit Ratio from the following data:
Cash Sales are 20% of Total Sales; Credit Sales are Rs. 5,00,000;
Purchases are Rs. 4,00,000; Excess of Closing Inventory over Opening
Inventory Rs. 25,000.

The solution of Question 106 Chapter 4 of +2-B: –

Credit Sales = Rs. 5,00,000
Cash Sales = 20% of Total Sales
Total Sales = Cash Sales + Credit Sales
Total Sales = X

 

X = Rs.5,00,000+ 20x
100
X – 20x = Rs.5,00,000
100
Rs. 4,00,000 = X + 25x
100
80x =   Rs. 5,00,00,000
X =   Rs. 5,00,00,000
  80
  = Rs. 6,25,000
Cost of Goods Sold = Purchases – Excess of Closing Stock over Opening Stock
  = Rs. 4,00,000 – Rs. 25,000
  = Rs. 3,75,000
Gross Profit = Total Sales – Cost of Goods Sold
  = Rs. 6,25,000 – Rs. 3,75,000
  = Rs. 2,50,000

 

Revenue from Operations = Gross Profit X 100
Net Sales
Revenue from Operations = Rs. 2,50,000 X 100
Rs. 6,25,000
  = 40%    

 

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 106 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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