Accountancy

Revenue from Operations, i.e., Net Sales Rs. 8,20,000; Return Rs. 10,000; Cost of Revenue from Operations (Cost of Goods Sold) Rs. 5,20,000; Operating Expenses Rs. 2,09,000; Interest on Debentures Rs. 40,500; Gain (Profit) on Sale of a Fixed Asset Rs. 81,000. Calculate Net Profit Ratio.

SOLUTION Net Sales = Rs. 8,20,000Gross Profit = Net Sales - Cost of Goods Sold= 8,20,000 - 5,20,000= Rs. 3,00,000 Net Profit = Gross Profit - Operating Expenses - Interest on Debentures + Profit on Sale of Fixed Asset= 3,00,000 - 2,09,000 - 40,500 + 81,000= Rs. 1,31,500 Net Profit Ratio = Net Profit / Net Sales × 100= 1,31,500 / 8,20,000 × 100= 16.04%

Continue ReadingRevenue from Operations, i.e., Net Sales Rs. 8,20,000; Return Rs. 10,000; Cost of Revenue from Operations (Cost of Goods Sold) Rs. 5,20,000; Operating Expenses Rs. 2,09,000; Interest on Debentures Rs. 40,500; Gain (Profit) on Sale of a Fixed Asset Rs. 81,000. Calculate Net Profit Ratio.

Cash Sales Rs. 2,20,000; Credit Sales Rs. 3,00,000; Sales Return Rs. 20,000; Gross Profit Rs. 1,00,000; Operating Expenses Rs. 25,000; Non-operating incomes Rs. 30,000; Non-operating Expenses Rs. 5,000. Calculate Net Profit Ratio.

SOLUTION Net Sales = Cash Sales  + Credit Sales - Sales Return= 2,20,000 + 3,00,000 - 20,000= 5,00,000 Net Profit = Gross Profit - Operating Expenses - Non-operating Expenses + Non-operating incomes= 1,00,000 - 25,000…

Continue ReadingCash Sales Rs. 2,20,000; Credit Sales Rs. 3,00,000; Sales Return Rs. 20,000; Gross Profit Rs. 1,00,000; Operating Expenses Rs. 25,000; Non-operating incomes Rs. 30,000; Non-operating Expenses Rs. 5,000. Calculate Net Profit Ratio.

Operating Cost Rs. 3,40,000; Gross Profit Ratio 20%; Operating Expenses Rs. 20,000. Calculate Operating Profit Ratio.

SOLUTION Cost of Revenue from Operations = Operating Cost-Operating Expenses= 3,40,000 - 20,000= Rs 3,20,000Gross Profit = 3,20,000 × 2080= Rs 80,000Revenue from Operations = Cost of Revenue from Operations + Gross Profit= 3,20,000 + 80,000= Rs 4,00,000Operating Profit = Revenue from Operations - Operating Cost= 4,00,000 − 3,40,000= Rs 60,000Operating Profit Ratio = Operating Profit / Revenue from Operations × 100= 60,000…

Continue ReadingOperating Cost Rs. 3,40,000; Gross Profit Ratio 20%; Operating Expenses Rs. 20,000. Calculate Operating Profit Ratio.

Revenue from Operations Rs. 9,00,000; Gross Profit 25% on Cost; Operating Expenses Rs. 45,000. Calculate Operating Profit Ratio

SOLUTION Gross Profit = 9,00,000 × 25125= Rs 1,80,000Operating Profit = Gross Profit - Operating Expenses= 1,80,000 - 45,000= Rs. 1,35,000   Operating Profit Ratio = Operating Profit / Revenue from Operations × 100= 1,35,000 / 9,00,000 × 100= 15%     

Continue ReadingRevenue from Operations Rs. 9,00,000; Gross Profit 25% on Cost; Operating Expenses Rs. 45,000. Calculate Operating Profit Ratio

Calculate Operating Profit Ratio, in each of the following alternative cases: Case 1:  Revenue from Operations (Net Sales) Rs. 10,00,000; Operating Profit Rs. 1,50,000. Case 2:  Revenue from Operations (Net Sales) Rs. 6,00,000; Operating Cost Rs. 5,10,000. Case 4:  Revenue from Operations (Net Sales) Rs. 3,60,000; Gross Profit 20% on Sales; Operating Expenses Rs. 18,000. Case 4: Revenue from Operations (Net Sales) Rs. 4,50,000; Cost of Revenue from Operations Rs. 3,60,000; Operating Expenses Rs. 22,500. Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations Rs. 8,00,000; Gross Profit 20% on Sales; Operating Expenses Rs. 50,000.

SOLUTION Case 1 : Operating Ratio = Operating Cost /  Net Sales ×100= 1,50,000 / 10,00,000 × 100= 15% Case II : Operating Profit = Net Sales - Operating Cost=…

Continue ReadingCalculate Operating Profit Ratio, in each of the following alternative cases: Case 1:  Revenue from Operations (Net Sales) Rs. 10,00,000; Operating Profit Rs. 1,50,000. Case 2:  Revenue from Operations (Net Sales) Rs. 6,00,000; Operating Cost Rs. 5,10,000. Case 4:  Revenue from Operations (Net Sales) Rs. 3,60,000; Gross Profit 20% on Sales; Operating Expenses Rs. 18,000. Case 4: Revenue from Operations (Net Sales) Rs. 4,50,000; Cost of Revenue from Operations Rs. 3,60,000; Operating Expenses Rs. 22,500. Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations Rs. 8,00,000; Gross Profit 20% on Sales; Operating Expenses Rs. 50,000.

Calculate Operating Profit Ratio from the following information: 

Opening Inventory1,00,000Closing Inventory1,50,000Purchases10,00,000Loss by fire20,000Revenue from Operations, i.e., Net Sales14,70,000Dividend Received30,000Administrative and Selling Expenses1,70,000   SOLUTION Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory= 1,00,000 + 10,00,000 – 1,50,000=…

Continue ReadingCalculate Operating Profit Ratio from the following information: