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Question 65 Chapter 4 of +2-B – USHA Publication 12 Class

Question 65 Chapter 4 of +2-B
Q-65- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

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Question 65 Chapter 4 of +2-B

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Profitability Ratio

65. (G.P. Ratio) Calculate Gross Profit ratio in the following cases ;
(a) Opening inventory ₹ 50,000 ; Closing inventory ₹ 70,000 ; Inventory Turn over 6 times ; Gross Profit is 20% on Cost.
(b) Opening inventory is ₹ 5,000 in excess of closing inventory. Cash Sales is double of credit sales which is ₹ 70,000 ; Purchases ₹ 1,50,000.
(c) Cost of goods sold (Cost of goods i.e. Cost of Revenue from Operation) is ₹ 1,50,000 ; Sales (Revenue from Operation) are 20% above cost.

The solution of Question 65 Chapter 4 of +2-B: – 

   
(a) Inventory Turnover Ratio=Cost of Goods Sold
 Average Inventory
Average Inventory=Opening inventory +Closing inventory
2
 =₹ 50,000 + ₹ 70,000
 2
 =₹ 60,000
6=Cost of Goods Sold
₹ 60,000
Cost of Goods Sold=₹ 60,000 x 6
 =₹ 3,60,000
Gross Profit is 20% on Cost  
Gross Profit=20% of Cost of goods sold
 =20X₹ 3,60,000
100
 =₹ 72,000  
Sales=Cost of goods sold + Gross Profit  
 =₹ 3,60,000 + ₹ 72,000  
 =₹ 4,32,000  
Gross Profit Ratio=Gross ProfitX100
Sales
     
 =₹ 72,000X100
 ₹ 4,32,000
     
 =16.67%  

 

(b) Credit Sales=₹ 8,40,000X100
₹ 10,00,000
 =84%  
(b) Credit Sales=₹ 70,000
 =₹ 70,000 x 2
 =₹ 1,40,000
Total Sales=₹ 1,40,000 + ₹ 70,000
 =₹ 2,10,000
Purchase=₹ 1,50,000
Opening Inventory=Closing Inventory + ₹ 5,000
Gross Profit=Sales – Purchases – Opening Inventory + Closing Inventory
 =₹ 2,10,000 – ₹ 1,40,000 – ₹ 5,000
 =₹ 55,000
Gross Profit Ratio=₹ 55,000X100
₹ 2,10,000
 =26.19%  
(c) Cost of goods sold=₹ 1,50,000
Sales 20% above cost=₹ 1,50,000 + 20%
 =20X₹ 1,50,000
100
     
 =₹ 30,000  
Sales=₹ 1,50,000 + ₹ 30,000  
 =₹ 1,80,000  
Gross Profit=₹ 1,80,000 + ₹ 1,50,000  
 =₹ 30,000  
Gross Profit Ratio=₹ 30,000X100
₹ 1,80,000
     
 =16.67%  

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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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