Question 118 Chapter 4 of +2-B
Table of Contents
Operating Ratio
118. Calculate Operating Profit Ratio from the Following:
| Rs. | |
| Revenue from Operations, i.e., Net Sales | 5,00,000 |
| Cost of Revenue from Operations (Cost of Goods Sold) | 2,00,000 |
| Wages | 1,00,000 |
| Office and Administrative Expenses | 500,000 |
| Interest on Borrowings | 5,000 |
The solution of Question 118 Chapter 4 of +2-B: –
| Net Sales | = | Rs. 5,00,000 |
| Cost of Goods Sold | = | Rs. 2,00,000 |
| Operating Expenses | = | Rs. 50,000 |
| Operating Cost | = | Cost of Goods Sold + Operating Expenses |
| = | Rs. 2,00,000 + Rs. 50,000 | |
| = | Rs. 2,50,000 |
| Operating Ratio | = | Operating Cost | X | 100 |
| Net Sales |
| Operating Ratio | = | Rs. 2,50,000 | X | 100 |
| Rs. 5,00,000 | ||||
| = | 50% |
| Operating Profit Ratio | = | 100 – Operating Ratio |
| = | 100 – 50% | |
| = | 50% |
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
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