Total Revenue from Operations Rs. 1,00,000
Total Purchases Rs. 75,000
Carriage Inwards Rs. 2,000, Salaries Rs. 25,000, Decrease in Inventory Rs. 10,000, Return Outwards Rs. 2,000, and Wages 5,000. The Gross Profit ratio will be:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 10%
Gross Profit Ratio = Gross profit / Revenue from operations × 100, where gross profit is revenue from operations less the cost of revenue from operations. Only purchases, the change in inventory and direct expenses enter that cost.
Net purchases = Rs. 75,000 − Rs. 2,000 (return outwards) = Rs. 73,000
Cost of revenue from operations = Rs. 73,000 + Rs. 10,000 (decrease in inventory) + Rs. 2,000 (carriage inwards) + Rs. 5,000 (wages) = Rs. 90,000
Gross profit = Rs. 1,00,000 − Rs. 90,000 = Rs. 10,000
Gross profit ratio = Rs. 10,000 / Rs. 1,00,000 × 100 = 10%
Salaries of Rs. 25,000 are an operating expense, not a direct expense, so they are left out; counting them would wrongly turn the gross profit negative.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
|
