Question

Purchases ₹ 7,20,000; Office Expenses ₹ 30,000; Selling Expenses ₹ 90,000; Opening Inventory ₹ 1,40,000; Closing Inventory ₹ 80,000; Revenue from Operations ₹ 12,00,000. Calculate Operating Ratio.

विकल्प

• 60%

• 75%

• 70%

• 65%

Answer 1

75%

Explanation:

Cost of Revenue from Operations = Opening Inventory + Purchases − Closing Inventory

= 1,40,000 + 7,20,000 − 80,000

= ₹ 7,80,000

Operating Expenses = Office Expenses + Selling Expenses

= 30,000 + 90,000

= ₹ 1,20,000

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

= `(7,80,000 + 1,20,000)/(12,00,000) xx 100`

= `(9,00,000)/(12,00,000) xx 100`

= 75%