# 12th | Volume 3 | Chapter:4 | Question No. 121 to 125 | Accounting Ratio | Ts grewal Accounts Solution 2022-2023

#### Revenue from Operations  `12,00,000, Cost of Revenue from Operations  `5,00,000, Operating cost `6,00,000. Calculate Operating Ratio.

Operating ratio

= operating cost / revenue from operations ×100

= 50%

#### Question 122:

Operating Ratio 92%; Operating Expenses  `94,000; Revenue from Operations  `6,00,000; Sales Return  `40,000. Calculate Cost of Revenue from Operations (Cost of Goods Sold).

Revenue from Operations (Net Sales)=  ` 6,00,000*

Operating Ratio = 92%

Operating Ratio=Operating Cost Net Sales×100/92

=Operating Cost 6,00,000×100

Operating Cost= 6,00,000×92/100

=5,52,000

Operating Cost = Cost of Goods Sold + Operating Expenses

5,52,000 = Cost of Goods Sold + 94,000

Cost of Goods Sold =  ` 4,58,000

*Note: Sales Return will not be considered since net sales are given which means sales return have already been adjusted in the sales figure.

#### Question 123:

(i) Cost of Revenue from Operations (Cost of Goods Sold)  `2,20,000; Revenue from Operations (Net Sales)  `3,20,000; Selling Expenses  `12,000; Office Expenses  `8,000; Depreciation  `6,000. Calculate Operating Ratio.
(ii) Revenue from Operations, Cash Sales
`4,00,000; Credit Sales  `1,00,000; Gross Profit  `1,00,000; Office and Selling Expenses  `50,000. Calculate Operating Ratio.

Operationg expenses =Selling expenses+ Office Expenses + Depreciation

26,000=12,000+8000+6,000

Cost of Goods Sold = 2,20,000

Operating Cost = Cost of Goods Sold + Operating Expenses

Operating Cost = 2,20,000 + 26,000 = 2,46,000

Sales = 3,20,000

Operating Ratio= Operating Cost/ Net Sales ×100

=2,46,000/3,20,000×100=76.875%

Net Sales= Cost of Goods sold +Gross Profit

=4,00,000+1,00,000=5,00,000

Cost of Goods Sold= Net Sale- Gross Profit

=5,00,000-1,00,000=4,00,000

Operating Expenses = Office and Selling Expenses = 50,000

Operating Cost = Cost of Goods Sold+ Operating Cost

=4,00,000+50,000

= 4,50,000

Operating Ratio= Operating Cost/ Net Sales ×100

=4,50,000/5,00,000× 100=90%

#### Question 124:

From the following information, calculate Operating Ratio:

 Cost of Revenue Revenue from Operation: from Operations (Cost of Goods Sold) `52,000 Gross Sales ` 88,000 Operating Expenses `18,000 Sales Return ` 8,000

Net Sales = Gross Sales - Sales Return

= 88,000 - 8,000 =  ` 80,000

Operating Cost = Cost of Goods Sold + Operating Expenses

= 52,000 + 18,000 =  ` 70,000

Operating Ratio = Operating Cost/Net Sales × 100

= 70,000/80,000 × 100 = 87.5%

#### Question 125:

Calculate Cost of Revenue from Operations from the following information:
Revenue from Operations
` 12,00,000; Operating Ratio 75%; Operating Expenses  ` 1,00,000.

Given: Revenue from Operations (Net Sales)= ` 12,00,000

Operating Ratio=75%

Operating Expenses=  ` 1,00,000

Find out:

Cost of Revenue from Operations

Operating Ratio=Operating Cost/ Net Sales×100/75

=Operating Cost/12,00,000

Operating Cost= ` 9,00,000

Operating Cost=Cost of Revenue from Operations+Operating Expenses

9,00,000=Cost of Revenue from Operations+1,00,000

Cost of Revenue from Operations= ` 8,00,000