Question 117 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 117 Chapter 4 of +2-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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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 117 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

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