Question 136:
Compute Gross Profit Ratio from the
following information:
Revenue from Operations, i.e., Net Sales = `4,00,000; Gross
Profit 25% on Cost.
Answer:
Gross Profit 25% on Cost.
Let Cost = x
Gross Profit = x × 25/00=25x/100
Sales = Cost + Gross Profit
4,00,000 =x+ 25x/100
Or, 4,00,000 = 125x/100
Or, x= 4,00,000×100/125 = 3,20,000
Cost = x = ` 3,20,000
Gross profit = Sales – Cost
Gross profit ratio= Gross profit / Net Sales ×100
Gross profit ratio = 80,000×100/4,00,000=20%
Question 137:
Calculate Gross Profit Ratio from the following data:
Cash Sales are 20% of Total Sales; Credit Sales are `5,00,000;
Purchases are `4,00,000; Excess of
Closing Inventory over Opening Inventory
`25,000.
Answer:
Credit Sales = 5,00,000
Cash sales = 20% of Total Sales
Let Total Sales be ‘x’
Therefore, Cash Sales = 20% of x
Total Sales = Cash Sales + Credit Sales
x=20/100x+5,00,000
x-20/100x=5,00,000
80/100x=5,00,000
Cost of Goods Sold = Purchases – Excess of Closing Stock over Opening Stock
= ` 4,00,000 – `
25,000 = ` 3,75,000
Gross Profit = Total Sales – Cost of Goods Sold
= ` 6,25,000 – 3,75,000
= ` 2,50,000
Gross profit ratio= Gross profit / Net Sales ×100
= 2,50,000×100/6,25,000=40%
Question 138:
From the following information, calculate Gross Profit Ratio:
|
|
` |
|
|
` |
|
Credit Sales |
10,00,000 |
|
Decrease in Inventory |
20,000 |
|
Purchases |
6,00,000 |
|
Returns Outward |
20,000 |
|
Carriage Inwards |
20,000 |
|
Wages |
1,00,000 |
|
|
|
|
Rate of Credit Sale to Cash Sale |
4:1 |
Answer:
Credit Sale = ` 10,00,000
Rate of Credit Sale to Cash Sale = 4:1
Cash Sale = 1/4 × 10,00,000= ` 2,50,000
Total Sales = Cash Sales + Credit Sales = ` 2,50,000 + `
10,00,000 = ` 12,50,000
Cost of Goods Sold = Purchases – Return Outward + Carriage Inwards + Wages +
Decrease in Inventory
= ` 6,00,000 – `
20,000 + ` 20,000 + `
1,00,000 + ` 20,000
= ` 7,20,000
Gross Profit = Total Sales – Cost of Goods Sold
= ` 12,50,000 – `
7,20,000 = ` 5,30,000
Gross Profit Ratio = Gross Profit /
Net Sales × 100 = 5,30,000/12,50,000
× 100 = 42.40%
Question 139:
From the following information, calculate Gross Profit Ratio:
|
|
` |
|
` |
|
Revenue from Operations: |
|
|
|
|
Cash |
2,00,000 |
Carriage Inwards |
8,000 |
|
Credit |
8,00,000 |
Salaries |
42,000 |
|
Purchases: |
|
Decrease in Inventory |
1,22,000 |
|
Cash |
40,000 |
Returns Outwards |
20,000 |
|
Credit |
3,60,000 |
Wages |
20,000 |
(CBSE 2020 C)
Answer:
Total Sales= 2,00,000+8,00,000=10,00,000
Gross Profit= Total Sales + Wages- Purchases- Carriage Inwards- Returns Outwards- Decrease in Inventory
Gross Profit= 10,00,000+20,000-4,00,000-8,000-20,000-1,22,000
Gross Profit=4,70,000
Gross Profit Ratio=Gross Profit ×100/ Revenue from Operations
Gross Profit Ratio=4,70,000 ×100/ 10,00,000
Gross Profit Ratio = 47%
Question 140;
Opening Inventory `2,00,000, Closing Inventory `1,20,000, Inventory turnover Ratio is 8 times; Selling price 25% above cost. Calculate Gross Profit Ratio
Answer:
Gross profit ratio = gross profit by revenue from operation ×100
Gross profit ratio = 32,0000/ 16,00,000 × 100= 20%
Average inventory = opening inventory + closing inventory by 2
Average inventory = 2,00,000 + 12,0000/2
Average inventory = 1,60,000
Cost of revenue from operation = average inventory × inventory turnover ratio
Cost of revenue from operation =1,60,000 × 8 = 12,80,000
Gross profit = 25% of 12,80,000 = 3,20,000
Revenue from operations = cost of revenue from operations + gross profit
Revenue from operations = 12,80,000 + 3,20,000 = 16,00,000
Ts Grewal Solution 2024-2025
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Class 12 / Volume – III
Chapter 3 – Accounting Ratio