Question

Following is the Trading and Profit & Loss Account of a company for the year ended 31st March, 2025:

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Stock	63,000	By Sales	3,00,000
To Purchases	2,36,000	By Stock at end	1,50,000
To Wages	4,000
To Gross Profit c/d	1,47,000
Total	4,50,000	Total	4,50,000
To Administrative Exp.	4,000	By Gross Profit b/d	1,47,000
To Selling & Distribution Exp.	5,000
To Loss on sale of plant	3,000
To Net Profit	1,35,000
Total	1,47,000	Total	1,47,000

Calculate Gross Profit Ratio and Net Profit Ratio.

Hint:

Gross Profit Ratio = Gross Profit/Net Sales × 100; Net Profit Ratio = Net Profit/Net Sales × 100.

Answer 1

Step 1: Identify the required figures from the statement:
Net Sales = Rs. 3,00,000; Gross Profit = Rs. 1,47,000; Net Profit = Rs. 1,35,000.

Step 2: Apply the Gross Profit Ratio formula:
Gross Profit Ratio = (Gross Profit ÷ Net Sales) × 100 = (1,47,000 ÷ 3,00,000) × 100 = 49%.

Step 3: Apply the Net Profit Ratio formula:
Net Profit Ratio = (Net Profit ÷ Net Sales) × 100 = (1,35,000 ÷ 3,00,000) × 100 = 45%.

Final Answer:
Gross Profit Ratio = \[ \boxed{49\%} \], Net Profit Ratio = \[ \boxed{45\%} \].