Total Revenue from Operations Rs. 1,00,000

Total Purchases Rs. 75,000

Carriage Inwards Rs. 2,000, Salaries Rs. 25,000, Decrease in Inventory Rs. 10,000, Return Outwards Rs. 2,000, and Wages 5,000. The Gross Profit ratio will be:

Cost of revenue from operations $=$ net purchases $+$ direct expenses $+$ decrease in inventory $=(75{,}000-2{,}000)+2{,}000+5{,}000+10{,}000=\text{Rs.}90{,}000$. Salaries are an indirect expense and are excluded.

Gross profit $=1{,}00{,}000-90{,}000=\text{Rs.}10{,}000$.

Ratio $=\frac{10{,}000}{1{,}00{,}000}\times100=10\%$.