Study the information given below carefully and answer the following question.
| Particulars | 2020 (Amount in ₹) |
2019 (Amount in ₹) |
2018 (Amount in ₹) |
| Outstanding Expenses | 50,000 | 40,000 | 25,000 |
| Prepaid Expenses | 3,00,000 | 2,50,000 | 3,50,000 |
| Trade Payables | 18,00,000 | 16,00,000 | 14,00,000 |
| Inventory | 12,00,000 | 10,00,000 | 11,00,000 |
| Trade Receivables | 11,00,000 | 8,00,000 | 10,00,000 |
| Cash In hand | 17,00,000 | 12,00,000 | 15,00,000 |
| Revenue from Operations | 24,00,000 | 18,00,000 | 20,00,000 |
| Gross Profit Ratio | 12% | 15% | 18% |
Gross profit for the year 2019 will be :
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹2,70,000.
Gross profit ratio = 15%
Gross profit ratio = Gross profit/Revenue from operations x 100
15 = Gross profit/18,00,000 x 100
Gross profit = 15 x 18,00,000/100
= 2,70,000