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12th | Accounting Ratios | Question No. 111 To 115 | Ts Grewal Solution 2022-2023

Question 111


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

= 80,000×100/4,00,000=20%

Question 112:


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 113:


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 114:


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 115;


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

 

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Ts Grewal Solution 2022-2023

Class 12 / Volume – 3

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