From the following, calculate Gross Profit Ratio:Gross Profit: Rs. 50,000; Revenue from Operations Rs. 5,00,000; Sales Return: Rs. 50,000.

SOLUTION

Net Sales = 5,00,000
Gross Profit = 50,000

Gross Profit Ratio = Gross Profit / Net Sales × 100
= 50,000 / 5,00,000 × 100
= 10%

Note: Here we will not deduct the amount of sales return because the amount of net sales has already been provided in the question.