Question

Calculate Gross Profit Ratio from the following information :
Net Profit ₹2,80,000; Selling and Distribution Expenses ₹25,000; Establishment Expenses₹60,000; Interest Received ₹5,000; Sales ₹40,00,000.
(Ans. 9%)

Answer 1

ANSWER :

• ❖ If Net Profit is Rs. 2,80,000; Selling and Distribution Expenses is Rs. 25,000; Establishment Expenses is Rs. 60,000; Interest Received is Rs. 5,000 and Sales is Rs. 40,00,000; then the Gross Profit Ratio will be 9%.

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SOLUTION :

❒ Given :-

• Net Profit = Rs. 2,80,000

• Selling and Distribution Expenses = Rs. 25,000

• Establishment Expenses = Rs. 60,000

• Interest Received = Rs. 5,000

• Sales = Rs. 40,00,000

❒ To Calculate :-

• Gross Profit Ratio = ?

❒ Required Formula :-

• $\dag \: \: \underline{ \boxed{ \bold{ \: Gross \: \: Profit \: \: Ratio = \dfrac{Gross \: \: Profit }{Net \: \: Sales } \times 100 \: }}}$

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❒ Calculation :-

Here,

• Net Profit = Rs. 2,80,000

• Selling and Distribution Expenses = Rs. 25,000

• Establishment Expenses = Rs. 60,000

• Interest Received = Rs. 5,000

So,

• ✠ Gross Profit = Net Sales + Selling and Distribution Expenses + Establishment Expenses - Interest Received

➨ Gross Profit = Rs. 2,80,000 + Rs. 25,000 + Rs. 60,000 - Rs. 5,000

➨ Gross Profit = Rs. 3,65,000 - Rs. 5,000

➨ Gross Profit = Rs. 3,60,000

Again,

• Sales = Rs. 40,00,000

As there is no Sales Return mentioned in the question, the amount given in Sales will be considered as Net Sales.

So,

• ✠ Net Sales = Rs. 40,00,000

Now,

Using the formula of Gross Profit Ratio, we get,

• $\bigstar \: \: \sf{ \: Gross \: \: Profit \: \: Ratio = \dfrac{Gross \: \: Profit }{Net \: \: Sales } \times 100 \: }$

$\implies \: \sf{Gross \: \: Profit \: \: Ratio = \dfrac{3,60,000}{40,00,000} \times 100}$

$\implies \: \sf{Gross \: \: Profit \: \: Ratio = \dfrac{3,60,000}{40,000}}$

$\implies \: \sf{Gross \: \: Profit \: \: Ratio = 9\%}$

Answer 2

Explanation:

Articles 14,15,28,29 and 30 of the constitution have protected the intrests of the minority communities in India. ARTICLE 14 provides equality before law and equal protection which provide protection against discrimination irrespective of religion or caste.