Question 112 Chapter 4 of +2-B - T.S. Grewal 12 Class

Question 112 Chapter 4 of +2-B

Table of Contents

The solution of Question 112 Chapter 4 of +2-B: –

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)

Operating Ratio

112. Operating Ratio 92%; Operating Expenses Rs. 94,000; Revenue from
Operations Rs. 6,00,000; Sales Return 40,000. Calculate Cost of Revenue
from Operations (Cost of Goods Sold)

The solution of Question 112 Chapter 4 of +2-B: –

Net Sales	=	Rs. 6,00,000
Operating Ratio	=	92%

Revenue from Operations	=	Gross Profit	X	100
		Net Sales

92%	=	Operating Cost	X	100
		Rs. 5,00,000
	=	84%

Operating Cost	=	Rs. 6,00,000 x 92%
Operating Cost	=	Rs. 5,52,000
Operating Cost	=	Cost of Goods Sold + Operating Expenses
Rs. 5,52,000	=	Cost of Goods Sold + Rs. 94,000
Cost of Goods Sold	=	Rs. 5,52,000 – Rs. 94,000
	=	Rs. 4,58,000