Revenue from sale of goods manufactured is shown in the statement of profits and loss as ____________________.

Revenue from operations

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Other Income

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Any of the above

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None of the above

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Solution

The correct option is B Revenue from operations
Revenue from sale of goods manufactured is shown in the statement of profit and loss as revenue from operations because goods manufactured is the main activity and hence, sale of the goods manufactured is a part of main business activity.
Sale of goods manufactured is an operating activity of the business and any revenue that arises from the same will be shown in revenue from operations.

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Tanushree Ltd. is in the business of manufacturing cosmetics. Encouraged by the spurt in profits, the Company decided to spend 20 $%$ of its profits to organise clealiness drive in a nearby village. Following particulars are obtained from the Company's books :

$\begin{matrix} Note & 31.03.2017 & 31 st No & March & March 2018 & 2017 Rs & Rs Revenue from Operations & 40, 00, 000 & 25, 00, 000 Purchase of Stock in Trade & 33, 60, 000 & 18, 50, 000 Changes in Inventories & (2, 00, 000) & 1, 50, 000 Other Expenses & 1, 20, 000 & 1, 00, 000 Other Income & 1, 60, 000 & 50, 000 \end{matrix}$

You are required to : (a) Prepare a Common Size Statement of Profit & Loss, and

(b) Identify the value highlighted.

Interest on Debentures is a/an ___ and is debited to the Profit & Loss A/c.

Q. Revenue from Operations, i.e., Net Sales ₹ 8,20,000; Return ₹ 10,000; Cost of Revenue from Operations (Cost of Goods Sold) ₹ 5,20,000; Operating Expenses ₹ 2,09,000; Interest on Debentures ₹ 40,500; Gain (Profit) on Sale of a Fixed Asset ₹ 81,000. Calculate Net Profit Ratio.

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