Cash Revenue from Operations Rs 4 00 000 Credit Revenue from Operations Rs 21 00 000 Revenue from Op...........

General Accounting Principles Ratio analysis

Cash Revenue from Operations Rs 4,00,000 Credit Revenue, from Operations Rs 21,00,000; Revenue from Operations Return Rs 1,00,000; Cost of revenue from operations Rs 19,20,000. G.P. ratio will be

23.2%

80%

20%

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Explanation:

GIVEN: Cash Revenue from Operations Rs 4,00,000 Credit Revenue, from Operations Rs 21,00,000; Revenue from Operations Return Rs 1,00,000; Cost of revenue from operations Rs 19,20,000.

revenue fromoperation i.e., Net sales = credit sales + cash sales - Return from sales

= Rs. 21,00,000 + Rs. 4,00,000 - Rs 1,00,000

= Rs. 24,00,000

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

total revenue from operations

= Rs. 24,00,000-Rs.19,20,000 * 100

Rs. 25,00,000

= Rs.4,80,000 * 100

Rs. 24,00,000

= 20%