Question

Particulars	₹
Credit Revenue from Operations	15,00,000
Cash Revenue from Operations	10,00,000
Employee Benefit Expenses	3,00,000
Selling and Distribution Expenses	2,00,000
Loss on Sale of Machinery	1,00,000
Gross Profit Ratio	40%

Operating Ratio will be:

विकल्प

• 80%

• 84%

• 60%

• 64%

Answer 1

80%

Explanation:

Total Revenue from Operations = Credit Revenue from Operations + Cash Revenue from Operations

= 10,00,000 + 15,00,000

= ₹ 25,00,000

Gross Profit = 40/% of 25,00,000

= ₹ 10,00,000

Gross Profit = Total Revenue − Cost of Revenue from Operations

10,00,000 = 25,00,000 − Cost of Revenue from Operations

Cost of Revenue from Operations = 25,00,000 − 10,00,000

= ₹ 15,00,000

Operating Expenses = Employee Benefit Expenses + Selling and Distribution Expenses

= 3,00,000 + 2,00,000

= ₹ 5,00,000

Operating Ratio = `("Cost of Revenue from Operations" + "Operating Expenses")/"Total Revenue from Operations" xx 100`

= `(15,00,000 + 5,00,000)/(25,00,000) xx 100`

= `(20,00,000)/(25,00,000) xx 100`

= 80%