Numerical - Net profit ratio for given sales, sales return, income tax & profit

Q.  If sales is Rs 10,00,000, sales returns is Rs 50,000, Profit Before Tax is Rs 2,00,000, Income tax is 40%, Net profit ratio is
- Published on 09 Sep 15

a. 12.63%
b. 20%
c. 10%
d. 50%

ANSWER: 12.63%

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    Discussion

  • MANOJ KUAR SETHI   -Posted on 22 Sep 21
    Net sale= 10,00,000-50,000=9,50,000
    PBT=2,00,000, Income tax= 40% of 2,00,000= 80,000
    PAT= 2,00,000-80,000=1,20,000
    Net profit ratio= PAT*100/Net sales= 1,20,000*100/9,50,000=12.63

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