137 :- Calculate Gross Profit Ratio from the following data :
Cash Sales are 20% of Total Sales; Credit Sales are Rs 5,00,000; Purchase are Rs 4,00,000; Excess of Closing Inventory over Opening Inventory Rs 25,000.
Solution :-
Total Sales = Cash Sales + Credit Sales
x = 20x/100 + 5,00,000
x – 20x/100 = 5,00,000
80x/100 = 5,00,000
x = 6,25,000
Revenue from Operation = Rs 6,25,000
Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory
= Purchases – (Closing Inventory – Opening Inventory)
= 4,00,000 – 25,000
= Rs 3,75,000
Gross Profit = Revenue from Operation – Cost of Goods Sold
= 6,25,000 – 3,75,000
= Rs 2,50,000
Gross Profit Ratio = Gross Profit/Revenue from Operation x 100
= 2,50,000/6,25,000 x 100
= 40%