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Question 106 Chapter 4 of +2-B
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Table of Contents
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 |
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| Revenue from Operations | = | Gross Profit | X | 100 |
| Net Sales |
| Revenue from Operations | = | Rs. 2,50,000 | X | 100 |
| Rs. 6,25,000 | ||||
| = | 40% |
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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