Question 126 Chapter 4 of +2-B
Table of Contents
Net Profit Ratio
126. Revenue from Operations Rs. 4,00,000; Gross Profit Ratio 25%;
Operating Ratio 90%. Non-operating Expenses 2,000; Non-operating
Income Rs. 22,000. Calculate Net Profit Ratio.
The solution of Question 126 Chapter 4 of +2-B: –
| Net Profit | = | Operating Profit + Non Operating Incomes -Non Operating Expenses |
| = | Rs. 40,000 + Rs. 22,000 – Rs. 2,000 | |
| = | Rs. 60,000 | |
| Operating Profit Ratio | = | 100 −Operating Ratio |
| = | 100-90 =10% | |
| = | Rs. 1,31,500 | |
| Operating Profit | = | Rs. 4,00,000 x 10% |
| = | Rs. 40,000 |
| Net Profit Ratio | = | Net Profit | X | 100 |
| Net Sales |
| Net Profit Ratio | = | Rs. 60,000 | 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)
- 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
