Page 377 - VIRANSH COACHING CLASSES

7 : (Gross Profit Ratio)
Compute Gross Profit Ratio from the following information sales ` 5,00,000, Gross Profit Ratio
25% on cost.
Solution : Gross Profit is 25% on cost
Therefore Goods costing ` 100 must have been sold for ` 125.
Hence, if sales are ` 125. G.P. is ` 25.
If sales are ` 5,00,000, then G.P. will be as follows :
25
G.P. = 5,00,000 × 125 = ` 1,00,000

Gross Profit
Gross Profit Ratio = × 100
Net Sales
1,00,000
= × 100 = 20%
5,00,000

8 : Net Profit Ratio
Calculate the net profit ratio from the following data
Sales = ` 7,60,000
Cost of goods sold = ` 5,20,000.: .
Indirect Expenses = ` 1,20,000

Solution : Sales = ` 7,60,000
Less cost of goods sold = ` 5,20,000

Gross Profit = ` 2,40,000
Less Indirect Expenses = ` 1,20,000

Net profit = ` 1,20,000,

Net Profit
Net Profit Ratio = × 100
Sales
1,20,000
= × 100 = 15.79 %
7,60,000
9 : Net Profit Ratio

Gross Profit of Komal Limited for the year 2019-20 is ` 5,60,000 from the following information.
Calculate Net Profit Ratio.
Administrative Expenses = ` 1,60,000
Selling and Distribution Expense = ` 1,20,000
Interest on Debentures = ` 80,000
Income Tax = ` 60,000

Sales = ` 20,00,000
Calculation of Net Profit

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