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Home Questions 8JMEMU4H6K
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

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 :

Options:

₹20,70,000

₹18,00,000

₹2,70,000

₹15,30,000

Correct Answer:

₹2,70,000

Explanation:

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

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