✓ Board-verified
Accountancy · 2024 · 3 marks
CBSE 2024 · Region 4 · Set 2 · Q32
Calculate 'Operating Profit Ratio' from the following information: Revenue from operations ₹ 10,00,000 Gross profit 25% on cost Office and…
Calculate 'Operating Profit Ratio' from the following information : Revenue from operations ₹ $\displaystyle 10,00,000$ Gross profit $\displaystyle 25$% on cost Office and administrative expenses ₹ $\displaystyle 18,000$ Selling and distribution expenses ₹ $\displaystyle 2,000$ Loss by theft ₹ $\displaystyle 20,000$
Marking-scheme solution
Operating Profit Ratio= Operating Profit / Revenue from Operations x $\displaystyle 100$
Revenue from Operations= Cost of Revenue from Operations + Gross Profit
₹$\displaystyle 10,00,000$ = Cost of Revenue from Operations+ $\displaystyle 25$% of Cost of Revenue from Operations
Cost of Revenue from Operations= ₹$\displaystyle 8,00,000$
Operating Profit= Revenue from Operations- Cost of Revenue from operations- Office and
Administrative Expenses- Selling and Distribution Expenses
Operating Profit= ₹$\displaystyle 10,00,000$- ₹$\displaystyle 8,00,000$-₹$\displaystyle 18,000$-₹$\displaystyle 2,000$
= ₹$\displaystyle 1,80,000$
Operating Profit Ratio= ₹$\displaystyle 1,80,000$/₹$\displaystyle 10,00,000$ x $\displaystyle 100$
= $\displaystyle 18$%
More from Accounting Ratios
- The current ratio of Jack Ltd. is 3·2: 1 and the quick ratio is 1·5: 1. The excess of current assets over quick assets was represented by inventories…2025
- The current assets of X Ltd. are ₹ 2,00,000 and its current liabilities are ₹ 1,50,000. If, its working capital turnover ratio is 6 times, its…2023
- Prepare a 'Common S ize Balance Sheet' from the following B alance Sheet of Shree Ltd. as at 31st March, 2022: Balance Sheet of Shree Ltd. as at 31st…2022
- Identify and state the significance of any two ratios that are calculated to measure the efficiency of operations of business based on effective…2023
- From the following information, calculate 'Interest Coverage Ratio': Shareholders' funds 30,00,000 8% Long-term debt 10,00,000 Net profit after tax ₹…2026
- The quick ratio of Theta Ltd. is 0.8:1. Which of the following transactions will result in decrease in this ratio?2026
- Which of the following is not a Solvency Ratio?2023
- Calculate Gross Profit Ratio from the following information: Average Inventory ₹ 1,60,000; Inventory Turnover Ratio 8 times, Average Trade…2023
CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.