What will be the amount of Gross Profit if revenue from operations is ₹6,00,000 and Gross Profit Ratio is 20%.

₹1,20,000

The correct answer is option 3- ₹1,20,000.

Gross profit ratio = (Gross profit/Revenue from operations) x 100
                       20 = (Gross profit/6,00,000) x 100
Gross profit = 20 x 6,00,000/100
                   = 1,20,000