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As on 31.02.2024… (Class 12 Accountancy SQP 2024-25, Q28)

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AccountancyCBSE Class 12 · Sample paper, session 2024-25 · 1 mark · MCQ

CBSE Class 12 Accountancy sample paper 2024-25: question 28

From the official CBSE sample question paper for 2024-25, section B-I, question 28, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q28 · 1 mark · MCQAccounting Ratios

As on 31.02.2024 the following information of Bartan Manfacturing ltd. is available .
Net profit ratio 40%
Operating profit ratio 50%
On 1st April 2024 it was came to notice that the accountant had omitted recording the interest received on investment of Rs. 2,00,000 for the financial year 2023-24. The required rectification was done. What will be the effect of the same on Net Profit and operating profit ratio?

  1. (A)Net Profit ratio will increase and Operating Profit ratio will decrease
  2. (B)Both Net Profit ratio and Operating Profit ratio will increase
  3. (C)Net Profit ratio will increase and Operating Profit ratio will have no change
  4. (D)Net Profit ratio will remain same and Operating Profit ratio will increase

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Is interest received an operating income?

Hint 2

Operating profit = revenue − operating cost.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Interest received on investments is non-operating income. Recording it raises net profit, so the net profit ratio increases.

  2. Operating profit excludes non-operating income, so the operating profit ratio does not change. Option (C).

    1 mark

Answer: (C) Net Profit ratio will increase and Operating Profit ratio will have no change

Where the marks are

  • Non-operating income affects net profit only (1 mark)

Revise the chapter

  • Chapter: Accounting Ratios (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Accounting Ratios, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.