Advertisement Remove all ads

From the Following, Calculate Gross Profit Ratio: Gross Profit:₹50,000; Revenue from Operations ₹5,00,000; Sales Return: ₹50,000. - Accountancy

Sum

From the following, calculate Gross Profit Ratio:
Gross Profit:₹50,000; Revenue from Operations ₹5,00,000; Sales Return: ₹50,000.

Advertisement Remove all ads

Solution

Net Sales = Rs 5,00,000

Gross Profit = Rs 50,000 

Gross Profit Ratio = `"Gross Profit"/"Net Sales" xx 100`

`= 50000/500000 xx 100 = 10%`

Note: Here we will not deduct the amount of sales return because the amount of net sales has already been provided in the question. 

  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 104 | Page 104
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×