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

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

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Question 117 Chapter 4 of +2-B

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Operating Ratio

117. Calculate Operating Profit Ratio from the following information:

 Rs. Rs.
Opening Inventory1,00,000Closing Inventory1,50,000
Purchases 10,00,000Loss by fire20,000
Revenue from Operations, i.e., Net Sales14,70,000Dividend Received30,000
Administrative and Selling Expenses 1,70,000  

 

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

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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 CostX100
Net Sales
Operating Ratio=Rs. 11,20,000X100
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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Question 1 Chapter 1 of +2-B
T.S. Grewal’s Analysis of Financial Statements

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