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Question 113 Chapter 4 of +2-B
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Table of Contents
Operating Ratio
113. (i) Cost of Revenue from Operations Cost of Goods Sold Rs. 2,20,000;
Revenue from Operations Net Sales Rs. 3,20,000; Selling Expenses Rs.
12,000; Office Expenses 8,000; Depreciation 6,000. Calculate
Operating Ratio.
(ii) Revenue from Operations, Cash Sales 4,00,000; Credit Sales 1,00,000;
Gross Profit 1,00,000; Office and Selling Expenses 50,000. Calculate
Operating Ratio.
The solution of Question 113 Chapter 4 of +2-B: –
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Case I :
| Net Sales | = | Rs. 3,20,000 |
| Operating Expenses | = | Selling Expenses + Office Expenses + Depreciation |
| = | Rs. 12,000 + Rs. 8,000 + Rs. 6,000 | |
| = | Rs. 26,000 | |
| Cost of Goods Sold | = | Rs. 2,20,000 |
| Operating Cost | = | Cost of Goods Sold + Operating Expenses |
| = | Rs. 2,20,000 + Rs. 26,000 | |
| = | Rs. 2,46,000 |
| Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales |
| = | 2,46,000 | X | 100 | |
| Rs. 3,20,000 | ||||
| = | 76.87% |
Case II:
| Net Sales | = | Cash Sales + Credit Sales |
| = | Rs. 4,00,000 + Rs. 1,00,000 | |
| = | Rs. 5,00,000 | |
| Cost of Goods Sold | = | Net Sales – Gross Profit |
| = | Rs. 5,00,000 + Rs. 1,00,000 | |
| = | Rs. 4,00,000 | |
| Operating Expenses | = | Rs. 50,000 |
| Operating Cost | = | Cost of Goods Sold + Operating Expenses |
| = | Rs. 4,00,000 + Rs. 50,000 | |
| = | Rs. 4,50,000 |
| Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales |
| = | Rs. 4,50,000 | X | 100 | |
| Rs. 5,00,000 | ||||
| = | 90% |
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
