Accountancy

Calculate Operating Ratio from the following information: Operating Cost Rs. 6,80,000; Gross Profit 25%; Operating Expenses Rs. 80,000. 

SOLUTION Given: Operating Cost = 6,80,000Operating Expenses = 80,000Gross Profit Ratio = 25% Find out: Operating Ratio Operating Cost = Cost of Revenue from Operations + Operating Expenses6,80,000 = Cost of Revenue from Operations + 80,000Cost of Revenue from Operations = Rs. 6,00,000Gross Profit = 14th of sales = 13rd of costGross Profit = 13 × 6,00,000= Rs. 2,00,000 Gross Profit Ratio…

Continue ReadingCalculate Operating Ratio from the following information: Operating Cost Rs. 6,80,000; Gross Profit 25%; Operating Expenses Rs. 80,000. 

Calculate Cost of Revenue from Operations from the following information: Revenue from Operations Rs. 12,00,000; Operating Ratio 75%; Operating Expenses Rs. 1,00,000.

SOLUTION Given: Revenue from Operations (Net Sales) = Rs. 12,00,000Operating Ratio = 75%Operating Expenses = Rs. 1,00,000Find out: Cost of Revenue from Operations Operating Ratio = Operating Cost Net Sales × 1000 / 75= Operating Cost / 12,00,000Operating Cost = 9,00,000Operating Cost = Cost of Revenue from Operations + Operating Expenses9,00,000 = Cost of Revenue from Operations + 1,00,000Cost of Revenue from Operations = Rs. 8,00,000

Continue ReadingCalculate Cost of Revenue from Operations from the following information: Revenue from Operations Rs. 12,00,000; Operating Ratio 75%; Operating Expenses Rs. 1,00,000.

From the following information, calculate Operating Ratio:

Cost of Revenue from Operations (Cost of Goods Sold)  52,000Revenue from Operation: Operating Expenses 18,000Gross Sales 88,000Sales Return8,000 SOLUTION Net Sales  = Gross Sales - Sales Return= 88,000 - 8,000 = Rs. 80,000 Operating Cost = Cost of Goods Sold + Operating Expenses= 52,000 + 18,000 = Rs. 70,000Operating Ratio = Operating Cost Net Sales × 100= 70,000 / 80,000 × 100= 87.5% 

Continue ReadingFrom the following information, calculate Operating Ratio:

(i) Cost of Revenue from Operations (Cost of Goods Sold) Rs. 2,20,000; Revenue from Operations (Net Sales) Rs. 3,20,000; Selling Expenses Rs. 12,000; Office Expenses Rs. 8,000; Depreciation Rs. 6,000. Calculate Operating Ratio. (ii) Revenue from Operations, Cash Sales Rs. 4,00,000; Credit Sales Rs. 1,00,000; Gross Profit Rs. 1,00,000; Office and Selling Expenses Rs. 50,000. Calculate Operating Ratio.

SOLUTION Operation expenses = Selling expenses+ Office Expenses + Depreciation26,000 = 12,000 + 8000 + 6,000 Cost of Goods Sold = 2,20,000Operating Cost = Cost of Goods Sold + Operating ExpensesOperating Cost…

Continue Reading(i) Cost of Revenue from Operations (Cost of Goods Sold) Rs. 2,20,000; Revenue from Operations (Net Sales) Rs. 3,20,000; Selling Expenses Rs. 12,000; Office Expenses Rs. 8,000; Depreciation Rs. 6,000. Calculate Operating Ratio. (ii) Revenue from Operations, Cash Sales Rs. 4,00,000; Credit Sales Rs. 1,00,000; Gross Profit Rs. 1,00,000; Office and Selling Expenses Rs. 50,000. Calculate Operating Ratio.

Cost of Revenue from Operations (Cost of Goods Sold) Rs. 3,00,000. Operating Expenses Rs. 1,20,000. Revenue from Operations: Cash Sales Rs. 5,20,000; Return Rs. 20,000. Calculate Operating Ratio.

SOLUTION Net Sales = Cost of Goods sold + Gross Profit= 5,20,000 - 20,000= 5,00,000Operating Cost = Cost of Goods Sold+ Operating Expenses= 3,00,000 + 1,20,000= 4,20,000Operating Ratio = Operating Cost /…

Continue ReadingCost of Revenue from Operations (Cost of Goods Sold) Rs. 3,00,000. Operating Expenses Rs. 1,20,000. Revenue from Operations: Cash Sales Rs. 5,20,000; Return Rs. 20,000. Calculate Operating Ratio.

Gross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio. (i) Purchases of Stock-in-Trade Rs. 50,000. (ii) Purchases Return Rs. 15,000. (iii) Cash Sale of Stock-in-Trade Rs. 40,000. (iv) Stock-in-Trade costing Rs. 20,000 withdrawn for personal use. (v) Stock-in-Trade costing Rs. 15,000 distributed as free sample.

SOLUTION

Continue ReadingGross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio. (i) Purchases of Stock-in-Trade Rs. 50,000. (ii) Purchases Return Rs. 15,000. (iii) Cash Sale of Stock-in-Trade Rs. 40,000. (iv) Stock-in-Trade costing Rs. 20,000 withdrawn for personal use. (v) Stock-in-Trade costing Rs. 15,000 distributed as free sample.

(i) Revenue from Operations: Cash Sales Rs. 4,20,000; Credit Sales Rs. 6,00,000; Return Rs. 20,000. Cost of Revenue from Operations or Cost of Goods Sold Rs. 8,00,000. Calculate Gross Profit Ratio. (ii) Average Inventory Rs. 1,60,000; Inventory Turnover Ratio is 6 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio. (iii) Opening Inventory Rs. 1,00,000; Closing Inventory Rs. 60,000; Inventory Turnover Ratio 8 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio.

SOLUTION Net Sales = Cash Sales + Credit Sales - Sales Return= 4,20,000 + 6,00,000 - 20,000= 10,00,000 Cost of Goods Sold = 8,00,000Gross Profit = Net Sales - Cost of Goods…

Continue Reading(i) Revenue from Operations: Cash Sales Rs. 4,20,000; Credit Sales Rs. 6,00,000; Return Rs. 20,000. Cost of Revenue from Operations or Cost of Goods Sold Rs. 8,00,000. Calculate Gross Profit Ratio. (ii) Average Inventory Rs. 1,60,000; Inventory Turnover Ratio is 6 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio. (iii) Opening Inventory Rs. 1,00,000; Closing Inventory Rs. 60,000; Inventory Turnover Ratio 8 Times; Selling Price 25% above cost. Calculate Gross Profit Ratio.

Calculate Gross Profit Ratio from the following data: Average Inventory Rs. 3,20,000; Inventory Turnover Ratio 8 Times; Average Trade Receivables Rs. 4,00,000; Trade Receivables Turnover Ratio 6 Times; Cash Sales 25% of Net Sales.

SOLUTION Inventory Turnover Ratio = 8 timesAverage Inventory = 3,20,000Cost of Goods sold = 25,60,000Trade Receivables Turnover Ratio = 6 timesAverage Trade Receivables = 4,00,000Stock turnover ratio = Cost of Goods…

Continue ReadingCalculate Gross Profit Ratio from the following data: Average Inventory Rs. 3,20,000; Inventory Turnover Ratio 8 Times; Average Trade Receivables Rs. 4,00,000; Trade Receivables Turnover Ratio 6 Times; Cash Sales 25% of Net Sales.

From the following information, calculate Gross Profit Ratio:

 ParticularsAmount(Rs.) ParticularsAmount(Rs.) Credit Sales5,00,000 Decrease in Inventory10,000 Purchases3,00,000 Returns Outward10,000 Carriage Inwards10,000 Wages50,000 Rate of Credit Sale to Cash Sale 4: 1 SOLUTION Credit Sale =  Rs. 5,00,000Rate of Credit Sale to Cash Sale = 4: 1Cash Sale = 14 × 5,00,000 =  Rs. 1,25,000Total Sales =…

Continue ReadingFrom the following information, calculate Gross Profit Ratio: