‘Purchase of goods Rs. 35,000 for cash will increase the operating ratio.’ Is the statement correct? Give reasons. Post category:Accountancy Reading time:1 mins read SOLUTION No; There will be equal increase in Purchases and Closing Inventory and hence cost of Revenue from Operations will remain unchanged. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat will be the effect of purchase of goods for cash Rs. 3,000 on Gross Profit Ratio? (C.B.S.E. 2020; Kolkata. Lucknow) Next Post‘Sale of goods Rs. 23,000 for cash will not affect the operating ratio.’ Is the statement correct? Give reason. (C.B.S.E. 2020. Rajasthan) You Might Also Like Name any two Companies are exempted from creating Redemption Reserve’ by the SEBI. September 30, 2022 From the following information, calculate Total Assets to Debt Ratio: August 13, 2022 Anu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at Rs. 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1. Raja brought Rs. 1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at Rs. 2,50,000. Record necessary Journal entries in the books of the firm for the above transactions. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Name any two Companies are exempted from creating Redemption Reserve’ by the SEBI. September 30, 2022
Anu and Bhagwan were partners in a firm sharing profits in the ratio of 3 : 1. Goodwill appeared in the books at Rs. 4,40,000. Raja was admitted to the partnership. The new profit-sharing ratio among Anu, Bhagwan and Raja was 2 : 2 : 1. Raja brought Rs. 1,00,000 for his capital and necessary cash for his goodwill premium. Goodwill of the firm was valued at Rs. 2,50,000. Record necessary Journal entries in the books of the firm for the above transactions. August 1, 2022