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Question 75 Chapter 4 of +2-B
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Table of Contents
75. (GP Ratio/Operating NP Ratio/NP Ratio) From the following income statement of Modi Chemicals, compute (a) Gross profit ratio (b) Operating net profit ratio and (c) Net profit ratio. Ignore taxation.
| Statement of Profit And Loss | ||
| Particulars | Amount ₹ | |
| Revenue from Operations (Sales) | 8,43,500 | |
| Add Other Income | ||
| Profit on Sale of Car | 20,000 | |
| Interest on Investment | 40,000 | 60,000 |
| Total Revenue | 9,03,500 | |
| Less : Expenses | ||
| Purchases | 4,65,000 | |
| Changes in Inventories (Opening Inventory — Closing Inventory) (₹ 30,500 – ₹ 55,000) | -24,500 | |
| Depreciation | 16,000 | |
| Factory Expenses | 1,43,000 | |
| Office Expenses | 50,000 | |
| Selling Expenses | 30,000 | |
| Distribution Expenses | 20,000 | |
| Provision for Doubtful Debts | 4,000 | |
| Interest on Debenture | 14,000 | |
| Loss of Cash by Theft | 6,000 | 7,23,500 |
| Net Profit | 1,80,000 | |
The solution of Question 75 Chapter 4 of +2-B: –
| (a) Operating Profit Ratio | = | ₹ 2,60,000 | X | 100 |
| ₹ 8,43,500 | ||||
| = | 30.82% | |||
| (b) Net Profit Ratio | = | ₹ 1,40,000 | X | 100 |
| ₹ 8,43,500 | ||||
| = | 16.60% | |||
| (c) Operating Ratio | = | ₹ 1,80,000 | X | 100 |
| ₹ 8,43,500 | ||||
| = | 21.34% |
| Cost of goods sold | = | Opening Stock + Purchases + Factory Expenses – Closing Stock |
| = | ₹ 30,500 + ₹ 4,65,000 + ₹ 1,43,000 – ₹ 55,000 | |
| = | ₹ 5,83,500 | |
| Operating Net profit | = | Net profit + Non operating expenses* – Non-operating incomes** |
| = | ₹ 1,80,000 + 20,000 – ₹ 40,000 | |
| = | ₹ 1,40,000 | |
| Gross Profit | = | Sales – Cost of goods sold |
| = | ₹ 8,43,500 – ₹ 5,83,500 | |
| = | ₹ 2,60,000 |
| *Non operating expenses | = | Loss of Cash by Theft + Interest on Debentures |
| = | ₹ 6,000 + ₹ 14,000 | |
| = | ₹ 20,000 | |
| **Non operating incomes | = | Profit on sale of Car + Interest on Investment |
| = | ₹ 20,000 + ₹ 40,000 | |
| = | ₹ 60,000 |
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
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