Q. 102 DK Goel Accounting Ratios Solutions Class 12 CBSE (2024-25)

the solutions of Question number 102 of Accounting Ratios chapter 5 of DK Goel Class 12 CBSE (2024-25)

A company earns a gross profit of 25% on cost. Its credit revenue from operations are twice its cash revenue from operations. If the credit sales are ₹ 8,00,000. Calculate the gross profit ratio of the company.

[Ans. G.P. Ratio 20%.]

Solution:-

Gross Profit of a Company is 20% of Cost of Revenue from Operations. Its Cash Revenue from Operations are 1/3rd of its Credit Revenue from Operations. Calculate the G.P. Ratio if the Cash Revenue from Operations are ₹ 3,00,000.

[Ans. G.P Ratio 16.67%.]

Solution:-