What will be the amount of Gross Profit if revenue from operations is ₹6,00,000 and Gross Profit Ratio is 20%.
Answer & explanation
Correct answer: option 3
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