Question 156:
Operating Cost ₹3,40,000;
Gross Profit Ratio 20%; Operating Expenses ₹20,000. Calculate Operating
Profit Ratio.
Answer:
|
Cost of Revenue from Operations |
= Operating Cost-Operating Expenses = 3,40,000-20,000 = ₹3,20,000 |
|
Gross Profit |
= 3,20,000×20/80 = ₹80,000 |
|
Revenue from Operations |
=
Cost of Revenue from Operations + Gross Profit = 3,20,000+80,000 = ₹4,00,000 |
|
Operating Profit |
= Revenue from Operations-Operating Cost = 4,00,000−3,40,000 = ₹60,000 |
|
Operating Profit Ratio |
=
Operating Profit/Revenue from Operations×100 = 60,000/4,00,000×100 = 15% |
Question 157:
What will be the Operating Profit Ratio, if Operating Ratio
is 82.59%?
Answer:
Operating Ratio = 82.59%
Operating Ratio + Operating Profit Ratio = 100%
Operating Profit Ratio = 100% − 82.59% = 17.41%
Question 158:
Calculate Operating Profit Ratio, in each of the following
alternative cases:
Case 1:Revenue from Operations (Net Sales) ₹20,00,000; Operating Profit ₹3,00,000.
Case 2:Revenue from Operations (Net Sales) ₹6,00,000;
Operating Cost ₹5,10,000.
Case 4:Revenue from Operations (Net Sales) ₹3,60,000; Gross Profit 20% on
Sales; Operating Expenses ₹18,000
Case 4: Revenue from Operations (Net Sales) ₹4,50,000; Cost of Revenue
from Operations ₹3,60,000; Operating Expenses ₹22,500.
Case 5: Cost of Goods Sold, i.e., Cost of Revenue from
Operations ₹4,00,000; Gross Profit 20% on Sales;
Operating Expenses ₹25,000.
Answer:
Case 1
Operating Ratio= Operating Cost/ Net Sales ×100
=3,00,000/20,00,000× 100=15%
Case II
Operating Profit = Net Sales- Operating Cost
=6,00,000-5,10,000
=90,000
Operating Ratio= Operating Cost/ Net Sales ×100
=90,000/6,00,000× 100=15%
Case III
Net Sales = 3,60,000
Gross Profit = 20% on Sales
Gross Profit =20/100×3,60,000=72,000
Operating Profit = Net Sales- Operating Cost
=72,000-18,000
=54,000
Operating Ratio= Operating Cost/ Net Sales ×100
=54,000/3,60,000× 100=15%
Case IV
Net Sales = 4,50,000
Operating Profit = Net Sales- Cost of goods sold-Operation
expenses
=4,50,000-3,60,000-22,500
=67,500
Operating Ratio= Operating Cost/ Net Sales ×100
=67,500/4,50,000× 100=15%
Case V
Gross profit = 20% on sales
Let Sales =x
Gross profit=x×20/100=20x/100
Sales = Cost Goods Sold + Gross Profit
x=4,00000+20x/100
Or, 80x/100=4,00,000
Or, x=5,00,000
∴Sales = 5,00,000
Operating Cost = Cost of Goods Sold+ Operating Expenses
=4,00,000+25,000=4,25,000
Operating Profit = Net Sales- Cost of goods sold-Operation
expenses
=5,00,000-4,00,000-25,000
=75,000
Operating Profit Ratio = Operating Profit/ Net Sales×100
=75,000×100/5,00,000=15%
Question 159:
Operating Profit Ratio of star Ltd. is 20%. State, giving reason, which
of the following transactions will
(a) Increase (b) Decrease, or (c) not alter the
Operation Profit Ratio
(a) Purchases of Stock-in-trade ₹1,00,000
(b) Purchases Return ₹20,000
(c) Revenue from operation on sale of
Stock-in-trade ₹1,25,000.
(d) Stock-in-trade Costing ₹25,000
withdrawn for personal use.
Assuming that operating cost is
variable, i.e., varies from operations.
Answers;
Transactions
|
Effect
|
Reason
|
(a)
|
No Change |
Both purchases and closing inventory will increase and
hence Cost of Revenue from Operations win remain
unchanged. |
(b)
|
No Change |
Both purchases and closing inventory wiu
decrease and hence Cost of Revenue from Operations will remain unchanged. |
(c)
|
No Change |
Revenue from Operations will increase but closing
inventory will decrease by the same percentage (not by the same amount).
Therefore, Cost of Revenue from Operations will increase by the same
percentage as the Revenue from Operations increase. |
(d)
|
No Change |
Both purchases and dosing inventory will decrease and
hence Cost of Revenue from Operations will remain unchanged. |
Net Profit Ratio
Question 160:
Revenue from
Operations, i.e., Net Sales ₹12,00,000;
Net Profit ₹1,20,000. Calculate Net Profit Ration.
Answer:
Net Profit Ratio=Net Profit/Net Sales×100
=12,00,000/1,20,000×100
=10%
Ts Grewal Solution 2025-2026
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Class 12 / Volume – III
Chapter 4 – Accounting Ratios