Calculate Gross profit ratio Following is the profit and loss account of a limited companyOpening StockPurchases2,00,000 Sales12,40,0005,00,000 Closing Stock3,20,000Gross profit c/d8,60,00015,60,00015,60,000AdministrationExpensesSelling andDistribution58,000 Gross profit b/d8,60,0001,78,000ExpensesNet Profit6,24,0008,60,0008,60,000

Gross profit ratio = Gross profit/ Sales *100

Answered: Calculate Gross profit ratio

Business

Accounting

Calculate Gross profit ratio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Calculate Gross profit ratio

Following is the profit and loss account of a limited company
Opening Stock
Purchases
2,00,000 Sales
12,40,000
5,00,000 Closing Stock
3,20,000
Gross profit c/d
8,60,000
15,60,000
15,60,000
Administration
Expenses
Selling and
Distribution
58,000 Gross profit b/d
8,60,000
1,78,000
Expenses
Net Profit
6,24,000
8,60,000
8,60,000

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