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Question 76 Chapter 4 of +2-B
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Table of Contents
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 Inward | 6,000 | |
Wages | 14,000 | |
Administrative Expenses | 1,02,000 | |
Selling & Distribution System | 20,000 | |
Interest | 3,000 | 4,25,000 |
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 | = | ₹ 2,00,000 | X | 100 |
₹ 5,00,000 | ||||
= | 40% | |||
(b) Net Profit Ratio | = | ₹ 80,000 | X | 100 |
₹ 5,00,000 | ||||
= | 16% | |||
(c) Operating Ratio | = | ₹ 4,22,000 | X | 100 |
₹ 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 |
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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
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