Cash Revenue from Operations Rs4,00,000 Credit Revenue from Operations Rs21,00,000; Revenue from Operations Return Rs1,00,000; Cost of revenue from operations Rs19,20,000. G.P. ratio will be:

20%

The correct answer is option 3- 20%.

Net Revenue from Operations (Net Sales) = Credit Revenue + Cash Revenue from Operations - Revenue from Operations Return
Net revenue from operations = 24,00,000 + 1,00,000 - 1,00,000
                                          = 24,00,000

G.P = Net Revenue from Operations-Cost of Revenue from Operations
     = 24,00,000-19,20,000
     = 4,80,000

GPR=Gross Profit/Net Revenue of Operations × 100
     = 4,80,000/24,00,000*100
     = 20%