Question 107 Chapter 4 of +2-B – T.S. Grewal 12 Class

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  5,00,000 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

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.