What is gross profit ratio?Gross sales Rs. 7,60,000 Sales returns Rs. 40,000 Net Profit after interest Rs. 40,000 Indirect expenses Rs. 60,000 Interes - Accountancy MCQ CUET Accountancy 2022 8 Aug Shift 2 2026 | ExamTest.live

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What is gross profit ratio?Gross sales Rs. 7, 60, 000 Sales returns Rs. 40, 000 Net Profit after interest Rs. 40, 000 Indirect expenses Rs. 60, 000 Interest paid on debentures Rs. 20, 000

Solution & Step-by-step Explanation

Net Sales = Gross Sales - Sales Returns = 7, 60, 000 - 40, 000 = 7, 20, 000 .Net Profit before interest = 40, 000 + 20, 000 = 60, 000 .Gross Profit = Net Profit before interest + Indirect Expenses = 60, 000 + 60, 000 = 1, 20, 000 .Gross Profit Ratio = \frac{1 , 20 , 000}{7 , 20 , 000} \times 100 = 16.67% .

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What is gross profit ratio?Gross sales Rs. 7, 60, 000 Sales returns Rs. 40, 000 Net Profit after interest Rs. 40, 000 Indirect expenses Rs. 60, 000 Interest paid on debentures Rs. 20, 000

16.67%

12.22%

13.88%

24.44%

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