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VDO+ Tag:Question 76 Chapter 14 of Class 12 Part – 2 – 2024
IV. Profitability Ratios
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Video Tag: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 14 of Class 12 Part – 2 – 2024: –
| (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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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.
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1. Accountancy – Part 1 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 1 Class 12 by Unimax Publication