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VDO+ Tag:Question 70 Chapter 14 of Class 12 Part – 2 – 2024
IV. Profitability Ratios
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Video Tag:70. (GP Ratio/NP Ratio/Operating Ratio) Following is the income statement of Strong for the year ending 31st March. 2018. INCOME STATEMENT FOR THE YEAR ENDING 31ST MARCH, 2018
| Particulars | Amount ₹ | |
| Revenue from Operations (Sales) | 3,00,000 | |
| Add Other Income | ||
| Interest | 900 | |
| Dividend | 2,250 | |
| Profit on Sale of Securities | 450 | 3,600 |
| Total Revenue | 3,03,000 | |
| Less : Expenses | ||
| Purchases | 1,89,150 | |
| Change in Inventories | -13,350 | |
| (Opening Inventory- Closing Inventory) (₹ 45,750 – ₹ 59,100) | ||
| Carriage Inward | 1,200 | |
| Wages | 3,000 | |
| Administrative Expenses | 60,600 | |
| Financial Expenses | ||
| -Interest | 720 | |
| -Discount | 1,440 | |
| Bad Debts | 2,040 | |
| Selling and Distribution Expenses | 7,200 | |
| Non-Opening Expenses | 1,200 | 2,53,200 |
| Net Profit | 50,400 |
You are required to calculate (a) Gross profit ratio (b) Net profit ratio (c) Operating ratio
The solution of Question 70 Chapter 14 of Class 12 Part – 2 – 2024: –
| (1) Gross Profit Ratio | = | ₹ 1,20,000 | X | ₹ 2,00,000 |
| ₹ 3,00,000 | ||||
| = | 40% |
| (2) Net Profit Ratio | = | ₹ 50,400 | X | 8,00,000 |
| ₹ 3,00,000 | ||||
| = | 16.8% |
| (c) Operating Ratio | = | Operating Cost* | X | 100 |
| Net sales | ||||
| = | ₹ 2,50,000 | X | 100 | |
| ₹ 3,00,000 | ||||
| = | 84% |
| Cost of goods sold | = | Opening Inventory – Closing Inventory + Purchase + Carriage Inwards + Wages |
| = | ₹ 45,750 – ₹ 59,100+ ₹ 1,89,150 + ₹ 1,200 + ₹ 3,000 | |
| = | ₹ 1,80,000 | |
| Gross Profit | = | Sales – Cost of goods sold |
| = | ₹ 3,00,000 – ₹ 1,80,000 | |
| = | ₹ 1,20,000 | |
| Operating Cost | = | Cost of goods sold + Operating Expenses |
| = | ₹ 1,80,000 + ₹ 72,000 | |
| = | ₹ 2,52,000 |
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Chapter-Wise Solution of Usha Publication Accountancy – Part 2 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 2 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
Chapter No. 11 – Financial Statements of a Company
Chapter No. 12 – Financial Statement Analysis
Chapter No. 13 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 14 – Ratio Analysis
Chapter No. 15 – Cash Flow Statement
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 2 Class 12 by Unimax Publication
- Chapter No. 1 – Company Accounts (Share Capital)
- Chapter No. 2 – Issue of Debentures
- Chapter No. 3 – Redemption of Debentures
- Chapter No. 4 – Financial Statements of a Company (Balance Sheet Only)
- Chapter No. 5 -Financial Statement Analysis
- Chapter No. 6 – Tools/Methods of Financial Analysis
- Chapter No. 7 – Ratio Analysis
- Chapter No. 8 – Cash Flow Statement
Check out Part 1 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 1, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 1 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication