Cash Revenue from Operations ₹1,00,000, Credit Revenue from Operations ₹24,00,000; Revenue from Operations Return ₹1,00,000; Cost of revenue from operations ₹19,20,000. G.P. ratio will be:
Answer & explanation
Correct answer: option 3
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 x 100
= 20%