Question

Cash Revenue from Operations ₹ 4,00,000; Credit Revenue from Operations ₹ 21,00,000; Revenue from Operations Return ₹ 1,00,000; Cost of revenue from operations ₹ 19,20,000. G.P. ratio will be ______.

Options

• 4%

• 23.2%

• 80%

• 20%

Answer 1

Cash Revenue from Operations ₹ 4,00,000; Credit Revenue from Operations ₹ 21,00,000; Revenue from Operations Return ₹ 1,00,000; Cost of revenue from operations ₹ 19,20,000. G.P. ratio will be 20%.

Explanation:

Revenue from Operations = Cash Revenue from Operations + Credit Revenue from Operations − Revenue from Operations Return

= 4,00,000 + 21,00,000 − 1,00,000

= ₹ 24,00,000

Gross Profit = Revenue from Operations − Cost Revenue from Operations

= 24,00,000 − 19,20,000

= ₹ 4,80,000

Gross Profit Ratio = `"Gross Profit"/"Revenue from Operations" xx 100`

= `(4,80,000)/(24,00,000) xx 100`

= 20%