Question 66 Chapter 4 of +2-B – USHA Publication 12 Class

Question 66 Chapter 4 of +2-B

Question 66 Chapter 4 of +2-B

III. Activity Ratios

Working Capital Turnover Ratio

66. (GP Ratio when Credit Sales are given) Calculate the Gross Profit Ratio

Purchases  ₹ 5,00,000 
Credit Sales  ₹ 4,00,000 

Cash sales 20% of Total sales Revenue from Operation. Excess of closing stock over opening stock ₹ 50,000.

The solution of Question 66 Chapter 4 of +2-B: – 

Calculation of Gross Profit Ratio

     
Total Revenue from Operation = Credit Revenue from Operation + Cash Revenue from Operations
Let the Total Revenue from Operations = x
Cash Revenue from Operations = 20% of x
Credit Revenue from Operations = ₹ 4,00,000
x = x X ₹ 4,00,000
5
5x = x + ₹ 20,00,000    
5x-x = ₹ 20,00,000    
x = ₹ 20,00,000    
4
Total Sales = ₹ 5,00,000    
Cash Revenue from Operations = 20 X ₹ 5,00,000
  100
         
  = ₹ 1,00,000    

 

Cost of goods sold = Purchases – Excess of Closing inventory over opening inventory
  = ₹ 5,00,000 – ₹ 50,000
  = ₹ 4,50,000
Gross Profit = Total Sales – Cost of goods sold
  = ₹ 5,00,000 – ₹ 4,50,000
Purchase = ₹ 50,000
Gross Profit Ratio = Gross Profit X 100
Sales
  = ₹ 50,000 X ₹ 1,50,000
₹ 5,00,000
         
  = 10%    




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

2 Book 3 min 225x300 - Question 66 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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