 Question 125 Chapter 4 of +2-B

Net Profit Ratio

125. Revenue from Operations, i.e., Net Sales Rs. 8,20,000; Return 10,000;
Cost of Revenue from Operations Cost of Goods Sold 5,20,000; Operating
Expenses 2,09,000; Interest on Debentures 40,500; Gain Profit on Sale of
a Fixed Asset 81,000. Calculate Net Profit Ratio.

### The solution of Question 125 Chapter 4 of +2-B: –

 Net Sales = Rs. 8,20,000 Gross Profit = Net Sales – Cost of Goods Sold = Rs. 8,20,000 – Rs. 5,20,000 = Rs. 3,00,000 Net Profit = Gross Profit – Operating Expenses – Interest on Debentures + Profit on Sale of Fixed Asset = Rs. 3,00,000 – Rs. 2,09,000 – Rs. 40,500 – 81,000 = Rs. 1,31,500

 Net Profit Ratio = Net Profit X 100 Net Sales
 Net Profit Ratio = Rs. 1,31,500 X 100 Rs. 8,20,000 = 16.04%

Balance Sheet: Meaning, Format & Examples

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

### T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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