176 :- From the following information obtained from the books of Kamal Ltd., calculate (i) Gross Profit Ratio and (ii) Net Profit Ratio:
Solution :-
CASE 1
Cost of Goods Sold = Purchase – Return Outwards + Wages + Carriage Inwards + Decrease in Inventory
= 1,05,000 – 5,000 + 18,000 + 4,000 + 15,000
= Rs 1,37,000
Gross Profit = Revenue from operation – Cost of Goods Sold
= 2,50,000 – 1,37,000
= Rs 1,13,000
Gross Profit Ratio = Gross Profit/Revenue from Operation x 100
= 1,13,000/2,50,000 x 100
= 45.20%
CASE 2
Net Profit = Gross Profit – Salaries
= 1,13,000 – 30,000
= Rs 83,000
Net Profit Ratio = Net Profit/Revenue from Operation x 100
= 83,000/2,50,000 x 100
= 33.20%