‘Purchase of goods Rs. 35,000 for cash will increase the operating ratio.’ Is the statement correct? Give reasons. Post category:Accountancy Reading time:1 mins read SOLUTION No; There will be equal increase in Purchases and Closing Inventory and hence cost of Revenue from Operations will remain unchanged. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat will be the effect of purchase of goods for cash Rs. 3,000 on Gross Profit Ratio? (C.B.S.E. 2020; Kolkata. Lucknow) Next Post‘Sale of goods Rs. 23,000 for cash will not affect the operating ratio.’ Is the statement correct? Give reason. (C.B.S.E. 2020. Rajasthan) You Might Also Like While preparing Cash Flow’ Statement of Sharda Ltd. ‘Depreciation provided on fixed assets’ was added to net profit to calculate cash flow from operating activities. Was the accountant correct in doing so? Give reason. October 6, 2022 Raj Ltd. issued 5,000; 8% Debentures of Rs. 100 each at a premium of 5% payable as follows: Rs. 10 on application; Rs. 20 along with premium on allotment and balance on first and final call. Pass necessary Journal entries. July 16, 2022 X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner’s gain or sacrifice due to the change in ratio. July 27, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
While preparing Cash Flow’ Statement of Sharda Ltd. ‘Depreciation provided on fixed assets’ was added to net profit to calculate cash flow from operating activities. Was the accountant correct in doing so? Give reason. October 6, 2022
Raj Ltd. issued 5,000; 8% Debentures of Rs. 100 each at a premium of 5% payable as follows: Rs. 10 on application; Rs. 20 along with premium on allotment and balance on first and final call. Pass necessary Journal entries. July 16, 2022
X, Y and Z are sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April, 2019, they decide to share profits and losses in the ratio of 5 : 2 : 3. Calculate each partner’s gain or sacrifice due to the change in ratio. July 27, 2022