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Accountancy · 2023 · 4 marks
CBSE 2023 · Region 3 · Set 3 · Q33
Calculate Gross Profit Ratio from the following information: Average Inventory ₹ 1,60,000; Inventory Turnover Ratio 8 times, Average Trade…
Calculate Gross Profit Ratio from the following information : Average Inventory ₹ $\displaystyle 1{,}60{,}000$; Inventory Turnover Ratio $\displaystyle 8$ times, Average Trade Receivables ₹ $\displaystyle 2{,}00{,}000$; Trade Receivables Turnover Ratio $\displaystyle 6$ times and Cash Sales $\displaystyle 25$% of Total Sales.
OR
From the following information, calculate Working Capital Turnover Ratio : Capital Employed ₹ $\displaystyle 1{,}00{,}000$ Non-Current Assets ₹ $\displaystyle 80{,}000$ Cost of Revenue from Operations ₹ $\displaystyle 3{,}20{,}000$ Gross Profit Ratio $\displaystyle 20$%
Marking-scheme solution
Gross Profit Ratio = Gross Profit x $\displaystyle 100$
Revenue from Operations
Credit Revenue from Operation =Trade Receivables Turnover Ratio x Average Trade Receivables
= $\displaystyle 6$ x $\displaystyle 2{,}00{,}000$
= ₹$\displaystyle 12{,}00{,}000$
Then, Revenue from operations = Cash revenue from operations + Credit revenue from operations
x = x /$\displaystyle 4$ + $\displaystyle 12{,}00{,}000$
x = $\displaystyle 12{,}00{,}000$ x $\displaystyle 4$/$\displaystyle 3$
Revenue from Operations or x = ₹$\displaystyle 16{,}00{,}000$
Cost of Revenue from Operations= Average Inventory x Inventory Turnover Ratio
= $\displaystyle 8$ x $\displaystyle 1{,}60{,}000$
= ₹$\displaystyle 12{,}80{,}000$
Gross Profit= Revenue from operations - Cost of revenue from operations
Now, Gross profit = $\displaystyle 16{,}00{,}000$ - $\displaystyle 12{,}80{,}000$
= ₹$\displaystyle 3{,}20{,}000$
Gross Profit Ratio= $\displaystyle 3{,}20{,}000$ x $\displaystyle 100$ = $\displaystyle 20$%
$\displaystyle 16{,}00{,}000$
Q. From the following information, calculate……
Ans Working Capital Turnover Ratio = Revenue from Operations
Working Capital
Revenue from Operations = Cost of Revenue from Operations + Gross Profit
x = $\displaystyle 3{,}20{,}000$ + x/$\displaystyle 5$
$\displaystyle 4$ x = $\displaystyle 3{,}20{,}000$
$\displaystyle 5$
Revenue from Operations or x = ₹ $\displaystyle 4{,}00{,}000$
Working capital= Capital Employed- Non Current Assets
= $\displaystyle 1{,}00{,}000$ - $\displaystyle 80{,}000$
=$\displaystyle 20{,}000$
Now, Working Capital Turnover ratio= $\displaystyle 4{,}00{,}000$
$\displaystyle 20{,}000$
= $\displaystyle 20$ times
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CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.