Question 122 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 122 Chapter 4 of +2-B

Question 122 Chapter 4 of +2-B

Operating Ratio

122. Operating Cost 3,40,000; Gross Profit Ratio 20%; Operating Expenses Rs.
20,000. Calculate Operating Profit Ratio.

 

The solution of Question 122 Chapter 4 of +2-B: –

 

Cost of Revenue from Operations = Operating Cost-Operating Expenses
  = Rs. 3,40,000 – Rs. 20,000
  = Rs. 3,20,000
Gross Profit = 20 X Rs3,20,000
80
  = Rs 80,000    

 

Revenue from Operations = Cost of Revenue from Operations + Gross Profit
  = Rs. 3,20,000 – Rs. 80,000
  = Rs. 4,00,000
Operating Profit = Revenue from Operations – Operating Cost
  = Rs. 4,00,000 – Rs. 3,40,000
  = Rs. 60,000

 

Operating Ratio = Operating Cost X 100
Net Sales
Operating Ratio = Rs. 60,0000 X 100
Rs. 4,00,000
  = 15%    

 

 

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

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