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

Question 118 Chapter 4 of +2-B
Question No. 118- Chapter No.4 - T.S. Grewal +2 Book Part B

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Question 118 Chapter 4 of +2-B

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Operating Ratio

118. Calculate Operating Profit Ratio from the Following:

 Rs.
Revenue from Operations, i.e., Net Sales5,00,000
Cost of Revenue from Operations (Cost of Goods Sold)2,00,000
Wages1,00,000
Office and Administrative Expenses500,000
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

 

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Operating Ratio=Operating CostX100
Net Sales
Operating Ratio=Rs. 2,50,000X100
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: –

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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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