Books & Budget 2004 (Without Books) - Operating Ratio Problem
Qn. Given below are certain figures in crores of rupees:-
(All figures in Rs. Crores)
Particulars
|
Amount
|
Gross Traffic Receipts (Including Suspense of 100)
|
35000
|
OWE - Ordinary Working Expenses
|
25000
|
Appropriation to DRF
|
1200
|
Appropriation to Pension Fund
|
3500
|
Dividend to General Revenue
|
1700
|
Appropriation to DF - Development Fund
|
500
|
Find
1) Calculate the Operating Ratio from the above set of figures
2) What is the amount, which can be appropriated to Capital Fund ?
Solution:
Ready reckoner for calculation of Operating Ratio
SN
|
Particulars
|
formulae
|
Amount
|
SN
|
Particulars
|
formulae
|
Amount
|
Finding
| |
1.
|
Coaching Earnings (less refunds)
|
10
|
OWE - Ordinary Working Expenses
|
25000
| |||||
2.
|
Goods Earnings (less refunds)
|
11
|
Appropriation to DRF
|
1200
| |||||
3
|
Traffic Earnings
|
(1 + 2)
|
12
|
Appropriation to Pension Fund
|
3500
| ||||
4
|
Sundry Other Earnings (less refunds)
| ||||||||
5
|
Gross Earnings
|
(3 + 4)
|
34900
|
13
|
Gross Working Expenses
|
(10 + 11 + 12)
|
29700
|
O.R = 13/5 x 100= 29700/34900 x 100 = 85.10 %
| |
6
|
Suspense
|
100
|
14
|
Suspense
|
0
| ||||
7
|
Gross Receipts
|
(5 + 6)
|
35000
|
15
|
Gross Expenditure
|
(13 + 14)
|
29700
| ||
8
|
Miscellaneous Receipts
|
0
|
16
|
Miscellaneous Expenditure
|
0
| ||||
9
|
Total Revenue Receipts
|
(7 + 8)
|
35000
|
17
|
Total Revenue Expenditure
|
(15 + 16)
|
29700
|
Net Revenue/Net Receipts
= 9 - 17 = 35000 - 29700 = 5300
|
Surplus = Net Revenue/Net Receipts minus Dividends paid.
Surplus = 5300 - 1700 = 3600
Surplus - Appropriation to Development Fund = Balance left over for appropriating to Capital Fund
= 3600 - 500 = 3100
Hence Answer
1) 85.10 %
2) 3100
Note:
To find Gross Earnings, we have to deduct the suspense from Gross Receipts. (like Gross earnings plus Suspense = Gross Receipts)
Hence Gross Earnings = 35000 -100 = 34900
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