Question 151:
Calculate Operating Ratio from the following information:
Operating Cost ₹6,80,000; Gross Profit 25%; Operating Expenses ₹80,000.
Answer:
Given:
Operating Cost= ₹6,80,000
Operating Expenses= ₹80,000
Gross Profit Ratio=25%
Find out: Operating Ratio
Operating Cost = Cost of Revenue from Operation+Operating Expenses 6,80,000=Cost of Revenue from Operations+80,000
Cost of Revenue from Operations=
₹6,00,000
Gross Profit=14th of sales=13rd of cost
Gross Profit=13×6,00,000= ₹2,00,000
Gross Profit Ratio=Gross Profit
Net Sales×100/25=2,00,000
Net Sales×100
Net Sales= ₹8,00,000
Operating Ratio=Operating Cost/Net Sales×100
=6,80,000/8,00,000×100
=85%
Question 152:
(i) Cost of Revenue from Operations
(Cost of Goods Sold) ₹2,20,000; Revenue from Operations (Net Sales)
₹3,20,000; Selling Expenses ₹12,000; Office Expenses ₹8,000;
Depreciation ₹6,000. Calculate Operating Ratio.
(ii) Revenue from Operations, Cash Sales ₹4,00,000; Credit Sales ₹1,00,000;
Gross Profit ₹1,00,000; Office and Selling Expenses ₹50,000.
Calculate Operating Ratio.
Answer:
Operationg expenses =Selling expenses+ Office Expenses +
Depreciation
26,000=12,000+8000+6,000
Cost of Goods Sold = 2,20,000
Operating Cost = Cost of Goods Sold + Operating Expenses
Operating Cost = 2,20,000 + 26,000 =
2,46,000
Sales = 3,20,000
Operating Ratio= Operating Cost/ Net Sales ×100
=2,46,000/3,20,000×100=76.875%
Net Sales= Cost of Goods sold +Gross Profit
=4,00,000+1,00,000=5,00,000
Cost of Goods Sold= Net Sale- Gross Profit
=5,00,000-1,00,000=4,00,000
Operating Expenses = Office and Selling Expenses = 50,000
Operating Cost = Cost of Goods Sold+ Operating Cost
=4,00,000+50,000
= 4,50,000
Operating Ratio= Operating Cost/ Net Sales ×100
=4,50,000/5,00,000× 100=90%
Question 153:
Calculate Operating Profit
Ratio from the following
Revenue
from Operations (Net Sales) ₹5,00,000
Cost
of Revenue from Operations (Cost of Goods Sold) ₹2,00,000
Wages
₹1,00,000
Office
and Administrative Expenses ₹50,000
Interest
on Borrowings ₹5,000
Answer:
Operating
Profit= Sales – Cost of Goods Sold- Office and Administrative Expenses
Operating
Profit=5,00,000-2,00,000-50,000
Operating
Profit=2,50,000
Operating
Profit Ratio=2,50,000×100/5,00,000 = 50%
Operating
Profit Ratio = 50%
Question 154:
Calculate Operating Profit Ratio from the following
information:
|
Opening Inventory |
₹1,00,000 |
|
Closing Inventory |
₹1,50,000 |
|
Purchases |
₹10,00,000 |
|
Loss by fire |
₹20,000 |
|
Revenue from Operations, i.e., Net
Sales |
₹14,70,000 |
|
Dividend Received |
₹30,000 |
|
Administrative and Selling
Expenses |
₹1,70,000 |
|
|
|
Answer:
Cost of Goods Sold = Opening Inventory + Purchases – Closing
Inventory
= 1,00,000 + 10,00,000 – 1,50,000 =
9,50,000
Operating Expenses = Administrative and Selling Expenses = 1,70,000
Operating Cost = Cost of Goods Sold + Operating Expenses
= 9,50,000 + 1,70,000 = 11,20,000
Net Sales = 14,70,000
Operating Ratio= Operating Cost/ Net Sales ×100
=11,20,000/14,70,000×
100=76.19%
Operating Profit Ratio = 100 – Operating Ratio = 100 –
76.19 = 23.81%
Question 155:
Revenue from Operations ₹9,00,000;
Gross Profit 25% on Cost; Operating Expenses ₹45,000. Calculate Operating
Profit Ratio.
Answer:
|
Gross Profit |
= 9,00,000×25/125 = ₹1,80,000 |
|
Operating Profit |
=Gross Profit-Operating Expenses |
|
|
=1,80,000-45,000 = ₹1,35,000 |
|
Operating Profit Ratio |
=Operating Profit/Revenue from Operations×100 |
|
|
=1,35,000/9,00,000×100 |
|
|
=15%
|
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios