Question 67 Chapter 4 of +2-B
Table of Contents
67. (GP Ratio when Inventory T/O Ratio & Trade Receivable T/O Ratio are given) Calculate the Gross Profit Ratio from the following data.
| Average Inventory | ₹ 1,00,000 |
| Inventory Turnover Trade Receivable | 5 times |
| Average Trade Receivable | ₹ 2,00,000 |
| Trade Receivable turnover ratio | 5 times |
Cash Sales (Revenue from Operation) 20% of Net Sales.
The solution of Question 67 Chapter 4 of +2-B: –
| Cost of goods sold | = | Average Inventory x Inventory Turnover Ratio |
| = | ₹ 1,00,000 x 5 | |
| = | ₹ 5,00,000 | |
| Net Credit Sales | = | Average Trade Receivable x Trade Receivable turnover ratio |
| Sales | = | ₹ 2,00,000 x 5 |
| = | ₹ 10,00,000 |
| Total Sales | = | 100 | X | ₹ 10,00,000 |
| 800 | ||||
| = | ₹ 12,50,000 | |||
| Gross Profit | = | Net Sales – Cost of goods sold | ||
| = | ₹ 12,50,000 – ₹ 5,00,000 | |||
| = | ₹ 7,50,000 |
| Gross Profit Ratio | = | Gross Profit | X | 100 |
| Sales |
| = | ₹ 7,50,000 | X | ₹ 1,50,000 | |
| ₹ 12,50,000 | ||||
| = | 60% |
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
