Question 126 Chapter 4 of +2-B – T.S. Grewal 12 Class

Question 126 Chapter 4 of +2-B

Question 126 Chapter 4 of +2-B

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)

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

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