# Revenue from Operations, I.E., Net Sales ₹ 8,20,000; Return ₹ 10,000; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 5,20,000; - Accountancy

Sum

Revenue from Operations, i.e., Net Sales ₹ 8,20,000; Return ₹ 10,000; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 5,20,000; Operating Expenses ₹ 2,09,000; Interest on Debentures ₹ 40,500; Gain (Profit) on Sale of a Fixed Asset ₹ 81,000. Calculate Net Profit Ratio.

#### Solution

Net Sales= Rs 8,20,000

Gross Profit = Net Sales  Cost of Goods Sold

= 8,20,000  5,20,000

= Rs 3,00,000

Net Profit = Gross Profit - Operating Expenses - Interest on Debentures + Profit on Sale of Fixed Assets

= 3,00,000  2,09,000  40,500 + 81,000

= Rs 1,31,500

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

= 131500/820000 xx 100 = 16.04 %

Is there an error in this question or solution?

#### APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 3 Accounting Ratios
Exercise | Q 125 | Page 106