What is Operating Ratio? How is it calculated? Post category:Accountancy Reading time:1 mins read SOLUTION It measures the cost of Revenue from Operations plus operating expenses in comparison to Revenue from Operations:Operating Ratio = Cost of Revenue from Operations + Operating Expenses / Net Revenue from Operations x 100 Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ 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 are non-operating expenses? Next PostWhat is the significance of Operating Ratio? You Might Also Like From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement: August 20, 2022 How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit earned by it is not enough to do so, at the rate mentioned in the deed? September 26, 2022 Ashish and Aakash are partners sharing profit in the ratio of 3: 2. Their Capital Accounts showed a credit balance of Rs. 5,00,000 and Rs. 6,00,000 respectively as on 31st March, 2019 after debit of drawings during the year of Rs. 1,50,000 and Rs. 1,00,000 respectively. Net profit for the year ended 31st March, 2019 was Rs. 5,00,000. Interest on capital is to be allowed @ 10% p.a. Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account. July 21, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
From the following Balance Sheet of SRS Ltd. and the additional information as on 31st March, 2016, prepare a Cash Flow Statement: August 20, 2022
How will a firm deal with a situation when its partnership deed provides for interest on capital, but the profit earned by it is not enough to do so, at the rate mentioned in the deed? September 26, 2022
Ashish and Aakash are partners sharing profit in the ratio of 3: 2. Their Capital Accounts showed a credit balance of Rs. 5,00,000 and Rs. 6,00,000 respectively as on 31st March, 2019 after debit of drawings during the year of Rs. 1,50,000 and Rs. 1,00,000 respectively. Net profit for the year ended 31st March, 2019 was Rs. 5,00,000. Interest on capital is to be allowed @ 10% p.a. Pass the Journal entry for interest on capital and prepare Profit and Loss Appropriation Account. July 21, 2022