Forum General How to calculate GP percentage

How to calculate GP percentage
Anon
watch_later 07/03/21

Sir,

Purchases Rs:20 lacs

Sales Rs:21 lacs

Closing stock Rs:1 lacs

Gross profit Rs:2 lacs

Question:

How to calculate procedure GP percentage

1 Response | Latest response: 07/03/21 | Sort by Likes(thumb_up) Recent | General Reply
GST Payer
watch_later 07/03/21
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I believe you are referring Gross Profit ration (GP ratio).

GP ratio is derived by dividing gross profit by sales. Gross profit is direct sales minus direct expenses.

In your question Gross Profit is Rs. 2 lakhs and sales is 21 lakhs so GP ratio will be (Gross Profit/Sales * 100 )

2/21*100 = 9.52%

So GP ratio is 9.52%

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