1.

Gross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio.(i) Purchases of Stock-in-Trade ₹50,000.(ii) Purchases Return ₹15,000.(iii) Cash Sale of Stock-in-Trade ₹40,000.(iv) Stock-in-Trade costing ₹20,000 withdrawn for personal use.(v) Stock-in-Trade costing ₹15,000 distributed as free sample.

Answer» Gross Profit Ratio of a company is 25%. State giving reason, which of the following transactions will (a) increase or (b) decrease or (c) not alter the Gross Profit Ratio.

(i) Purchases of Stock-in-Trade ₹50,000.

(ii) Purchases Return ₹15,000.

(iii) Cash Sale of Stock-in-Trade ₹40,000.

(iv) Stock-in-Trade costing ₹20,000 withdrawn for personal use.

(v) Stock-in-Trade costing ₹15,000 distributed as free sample.


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