Opening Inventory Rs 1 00 000 Closing Inventory Rs 1 20 000 Purchases Rs 20 00 000 Wages Rs 2 40 000...........

General Accounting Principles Ratio analysis

Opening Inventory Rs 1,00,000; Closing Inventory Rs 1,20,000; Purchases Rs 20,00,000; Wages Rs 2,40,000; Carriage Inwards Rs 1,50,000; Selling Exp. Rs 60,000; Revenue from Operations Rs 30,00,000. Gross Profit ratio will be :

29%

26%

19%

21%

छोटे Courses बड़े Results

Master Ratio analysis

Prepare through Micro-courses

Try Now

Explanation:

GIVEN: Opening Inventory Rs 1,00,000; Closing Inventory Rs 1,20,000; Purchases Rs 20,00,000; Wages Rs 2,40,000; Carriage Inwards Rs 1,50,000; Selling Exp. Rs 60,000; Revenue from Operations Rs 30,00,000

COST REVENUE FROM OPERATION= Opening Inventory + Purchases +Carriage Inwards + Wages -Closing Inventory

= Rs 1,00,000 + Rs 20,00,000 + Rs 2,40,000 + Rs 1,50,000 - Rs 1,20,000

=Rs.23,70,000

gross profit= Net revenue from operations - cost of revenue from operations * 100

total revenue from operations

= Rs. 30,00,000-Rs.23,70,000 * 100

Rs. 30,00,000

= Rs.6,30,000 * 100

Rs. 30,00,000

= 21%