# Question 117 Chapter 4 of +2-B – T.S. Grewal 12 Class Question No. 117- Chapter No.4 - T.S. Grewal +2 Book Part B

Question 117 Chapter 4 of +2-B

Operating Ratio

117. Calculate Operating Profit Ratio from the following information:

 Rs. Rs. Opening Inventory 1,00,000 Closing Inventory 1,50,000 Purchases 10,00,000 Loss by fire 20,000 Revenue from Operations, i.e., Net Sales 14,70,000 Dividend Received 30,000 Administrative and Selling Expenses 1,70,000

### The solution of Question 117 Chapter 4 of +2-B: –

 Operating Cost = Rs. 1,70,000 Net Sales = Rs. 14,70,000 Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory = Rs. 1,00,000 – Rs. 10,00,000 – Rs. 1,50,000 = Rs. 9,50,000 Operating Cost = Cost of Goods Sold + Operating Expenses = Rs. 9,50,000 – Rs. 1,70,000 – Rs. 1,50,000 = Rs. 11,20,000

 Operating Ratio = Operating Cost X 100 Net Sales
 Operating Ratio = Rs. 11,20,000 X 100 Rs. 14,70,000 = 76.19%
 Operating Profit Ratio = 100 – Operating Ratio = 100 – 76.19% = 23.81%

Balance Sheet: Meaning, Format & Examples

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