Question 76 Chapter 4 of +2-B

Question 76 Chapter 4 of +2-B

IV. Profitability Ratios

76. (GP Ratio/NP Ratio/ Operating Ratio) The following is the profit and loss account of Wye Limited for the year ended on 31st March, 2018

Particulars Amount ₹
Revenue from Operations (Sales) 5,00,000
Add Other Income   
Dividend Received 5,000
Total Revenue 5,05,000
Less : Expenses  
Purchases 3,00,000 
Change in Inventories -20,000 
 (Opening Inventory- Closing Inventory)   
(₹ 70,000 – ₹ 90,000)   
Carriage Inward6,000 
Wages14,000 
Administrative Expenses1,02,000 
Selling & Distribution System20,000 
Interest3,0004,25,000
Net Profit 80,000

You are required to calculate : (a) Gross profit ratio (b) Net profit ratio (c) Operating ratio.

The solution of Question 76 Chapter 4 of +2-B: – 

 

(a) Operating Profit Ratio=₹ 2,00,000X₹ 2,00,000
₹ 5,00,000
 =40%  
(b) Net Profit Ratio=₹ 80,000X₹ 9,00,000
 ₹ 5,00,000
 =16%  
     
(c) Operating Ratio=₹ 4,22,000X100
 ₹ 5,00,000
     
 =84.4%  
Cost of goods sold=Opening Stock + Purchases + Factory Expenses – Closing Stock
 =₹ 70,000 + ₹ 3,00,000 + ₹ 6,000 + ₹ 14,000 – ₹ 90,000
 =₹ 3,00,000
Operating cost=Cost of goods sold + Administrative Expenses + Selling and Distribution expenses
 =₹ 3,00,000 – ₹ 1,02,000 + ₹ 20,000
 =₹ 4,22,000
Gross Profit=Sales – Cost of goods sold
 =₹ 5,00,000 – ₹ 3,00,000
 =₹ 2,00,000

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 76 Chapter 4 of +2-B  - USHA Publication  12 Class
T.S. Grewal’s Analysis of Financial Statements

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