Question 71 Chapter 4 of +2-B
Table of Contents
IV. Profitability Ratios
71. (GP Ratio & Operating Ratio) Opening Inventory ₹ 80,000 ; Purchases ₹ 4,30,900 ; Direct expenses ₹ 4,000 ; Closing Inventory ₹ 1,60,000 ; Administrative expenses ₹ 21,100 ; Selling and distribution expenses ₹ 40,000 ; Sales (Revenue from Operation) ₹ 10,00,000 Calculate.
(a) Gross profit ratio
(b) Operating ratio
The solution of Question 71 Chapter 4 of +2-B: –
| (1) Gross Profit Ratio | = | ₹ 6,45,100 | X | ₹ 2,00,000 |
| ₹ 10,00,000 | ||||
| = | 64.51% |
| (2) Net Profit Ratio | = | ₹ 4,16,000 | X | 8,00,000 |
| ₹ 10,00,000 | ||||
| = | 41.6% |
| Gross Profit | = | Net Sales + Closing stock – (opening stock + net purchases + Direct Expenses) |
| = | ₹ (10,00,000 + 1,60,000) – ( 80,000 + 4,30,900 + 4,000) | |
| = | ₹ 6,45,100 | |
| Cost of goods sold | = | Sales – Gross Profit |
| = | ₹ 10,00,000 – ₹ 6,45,100 | |
| = | ₹ 3,54,900 | |
| Operating Cost | = | Cost of goods sold + Operating Expenses |
| = | ₹ 3,54,900 + ₹ 61,100 | |
| = | ₹ 4,16,000 |
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
