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12th Class Accountancy Accounting Ratios Question Bank MCQs - Accounting Ratios

  • question_answer
    From the following information, calculate operating profit ratio. Opening stock Rs. 10,000; purchases Rs. 1,20,000; revenue from operations Rs. 4,00,000; purchase returns Rs. 5,000; returns from revenue from operations Rs. 15,000; selling expenses Rs. 70,000; administrative expenses Rs. 40,000; closing stock Rs. 60,000.

    A) 54.5%               

    B) 62.8%

    C) 90.2%               

    D) None of these

    Correct Answer: A

    Solution :

    [a] 54.5%
    Hint: Net revenue from operations = 4,00,000 - 15,000 = Rs. 3,85,000
    Cost of Revenue from Operations = Opening Stock + Purchases - Purchases Returns - Closing Stock
                                                     = 10,000 +1,20,000 - 5,000 - 60,000 =Rs. 65,000
    Operating Profit = Net Revenue from Operations - Cost of Revenue from Operations - Selling Expenses - Administrative Expenses
                           = 3,85,000 - 65,000 - 70,000 - 40,000
                           = 3,85,000 - 1,75,000
    Operating Profit Ratio = \[\frac{Operating Profit}{Net Revenue from Operations}\]
                                   = \[\frac{2,10,000}{3,85,000}\times 100\]=54.5%


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