# Question 107 Chapter 4 of +2-B – T.S. Grewal 12 Class Question No. 107- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 107 Chapter 4 of +2-B

Gross Profit Ratio

107. From the following information, calculate Gross Profit Ratio:

 Rs. Rs. Credit Sales 5,00,000 Decrease in Inventory 10,000 Purchases 3,00,000 Returns Outward 10,000 Carriage Inwards 10,000 Wages 50,000

Rate of Credit Sale to Cash Sale 4: 1.

### The solution of Question 107 Chapter 4 of +2-B: –

 Credit Sales = Rs. 5,00,000

 Cash Sales = Rs.5,00,000 X 1 4 = Rs. 1,25,000
 Total Sales = Cash Sales + Credit Sales = Rs 1,25,000 + Rs 5,00,000 = Rs. 6,25,000 Cost of Goods Sold = Purchases – Return Outward + Carriage Inwards + Wages + Decrease in Inventory = Rs. 3,00,000 – Rs. 10,000 + Rs. 10,000 + Rs. 50,000 + Rs. 10,000 = Rs. 3,60,000 Gross Profit = Total Sales – Cost of Goods Sold = Rs 6,25,000 – Rs 3,60,000 = Rs 2,65,000

 Revenue from Operations = Gross Profit X 100 Net Sales
 Revenue from Operations = Rs. 2,65,000 X 100 Rs. 6,25,000 = 42.40%

Balance Sheet: Meaning, Format & Examples

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