Question 116 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 116 Chapter 4 of +2-B

Question 116 Chapter 4 of +2-B

Operating Ratio

116. Calculate Operating Ratio from the following in formation:
Operating Cost Rs. 6,80,000; Gross Profit 25%; Operating Expenses Rs.
80,000.

 

The solution of Question 116 Chapter 4 of +2-B: –

 

Operating Cost = Cost of Revenue from Operations + Operating Expenses
Rs. 6,80,000 = Cost of Revenue from Operations + Rs. 80,000
  = Rs. 6,80,000 – Rs. 80,000
  = Rs. 6,00,000
Gross Profit = 1 X 100
3
  = Rs.2,00,000    
Operating Ratio = Gross Profit X 100
Net Sales
25% = Rs. 2,00,000 X 100
Net Sales
Net Sales = Rs. 2,00,000 X 100
25%
  = 8,00,000    
Operating Ratio = Gross Profit X 100
Net Sales
Net Sales = Rs. 6,80,000 X 100
Rs. 8,00,000
  = 85%    

 

 

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)

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2 Book 3 min 225x300 - Question 116 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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