Question 107 Chapter 4 of +2-B

Question 107 Chapter 4 of +2-B

Gross Profit Ratio

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

 Rs. Rs. 
Credit Sales 5,00,000Decrease in Inventory10,000
Purchases3,00,000Returns Outward10,000
Carriage Inwards10,000Wages 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 X1
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 ProfitX100
Net Sales
Revenue from Operations=Rs. 2,65,000X100
Rs. 6,25,000
 =42.40%  

 

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)

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)

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

2 Book 3 min 225x300 - Question 107 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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