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Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will not change in gross profit ratio?

Option 1: Goods costing Rs. 1,50,000 sold for Rs. 2,00,000.

Option 2: Goods costing Rs. 3,40,000 sold for Rs. 4,00,000.

Option 3: Revenue from Operations Rs. 2,00,000.

Option 4: None of the above


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Revenue from Operations Rs. 2,00,000.


Solution : Answer = Revenue from Operations Rs. 2,00,000.

Revenue from the operation will increase but the Closing stock will decrease by the same percentage, not by the same amount. As a Result Cost of Revenue from operation will increase by the same percentage as the Revenue from operation increases.
Hence, the correct option is 3.

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