Question 68 Chapter 4 of +2-B – USHA Publication 12 Class

Question 68 Chapter 4 of +2-B
Q-68- CH-4 Book 2 - Usha Pub. +2 Book 2020 - Solution

Question 68 Chapter 4 of +2-B

IV. Profitability Ratios

68. (Net Profit Ratio) The gross Profit Ratio of a company was 25%. Its cash sales Revenue from Operation were ₹ 2,00,000 and its credit sales were 75% of the total sales. If the Indirect expenses of the company were ₹ 40,000.
Calculate Net profit Ratio.

The solution of Question 68 Chapter 4 of +2-B: – 

 

     
Total Sales = Cash Sales + Credit Sales
Cash Sales = ₹ 2,00,000
Credit Sales = 75% of Total sales
Total Sales = 100 X ₹ 2,00,000
25
  = ₹ 8,00,000    
Gross Profit = 25 X 8,00,000
100
  = ₹ 2,00,000    
         
Net Profit = Gross Profit – Indirect Expenses    
  = ₹ 2,00,000 – ₹ 40,000    
  = ₹ 1,60,000    
Net Profit Ratio = Net Profit X 100
Net Sales
         
  = ₹ 1,60,000 X ₹ 1,50,000
₹ 8,00,000
         
  = 20%    


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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