‘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 Rajasthan) You Might Also Like If a fixed amount is withdrawn on the last day of every quarter, for what period the interest on total drawings will be calculated? September 26, 2022 The Patents of X Ltd. increased from Rs. 3,00,000 in 2013-14 to Rs. 3,50,000 in 2014-15. What will be its treatment while preparing Cash Flow Statement for the year ended 31st March 2015? October 6, 2022 On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of Rs. 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of Rs. 10,000 in Securities Premium Reserve. Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures. July 18, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
If a fixed amount is withdrawn on the last day of every quarter, for what period the interest on total drawings will be calculated? September 26, 2022
The Patents of X Ltd. increased from Rs. 3,00,000 in 2013-14 to Rs. 3,50,000 in 2014-15. What will be its treatment while preparing Cash Flow Statement for the year ended 31st March 2015? October 6, 2022
On 1st January, 2017, Raha Ltd. issued 6,000, 8% Debentures of nominal (face) value of Rs. 100 each redeemable at 5% premium in equal proportions at the end of 5, 10 and 15 years. It has a balance of Rs. 10,000 in Securities Premium Reserve. Pass Journal entries. Also give Journal entries for writing off Loss on Issue of Debentures. July 18, 2022