Question 118 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 118 Chapter 4 of +2-B

Question 118 Chapter 4 of +2-B

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

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

2 Book 3 min 225x300 - Question 118 Chapter 4 of +2-B  - T.S. Grewal 12 Class
T.S. Grewal’s Analysis of Financial Statements

Leave a Reply