Question : The Operating Profit Ratio of a company is 20%. State, giving reason, which of the following transactions will not alter the Operating Profit Ratio.
Option 1: Purchase of Stock-in-Trade Rs. 50,000.
Option 2: Purchases Return Rs. 10,000 .
Option 3: Revenue from Operations on sale of Stock-in-Trade Rs. 60,000
Option 4: All of the above
Correct Answer: All of the above
Solution : Answer = All of the above
If Purchase stock then Both Purchases and Closing stock will be increased by the same amount and hence the cost of Revenue from the operation will remain unchanged. If Purchase returns then both Purchase and closing shock will decrease By the Same amount.
Revenue from operation will be increased by Rs 72,000 and closing Inventory will decrease by Rs 6,000. Hence, the correct option is 4.
Question : The Gross Profit Ratio of a company is 25%. Which of the following transactions will increase;
Option 2: Purchases Return Rs. 15,000 .
Option 3: Revenue from Operations on sale of Stock-in-Trade Rs. 85,000 .
Option 4: None of the above
Question : Credit Revenue from Operations Rs. 2,00,000; Opening Trade Receivables Rs. 30,000 and Closing Trade Receivables Rs. 50,000 . which of the following transactions will Decrease ....................
Option 1: Collection from trade receivables Rs. 10,000
Option 2: Sold goods on credit Rs. 20,000
Option 3: Revenue from Operations returns Rs. 4,000
Option 4: Credit purchase Rs. 50,000
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