Question

A business has compiled the following information for the year ended 31st December, 2018:

Particulars	Rs.
Opening Stock	3,86,200
Purchases	9,89,000
Closing Stock	4,22,700

The gross profit as a percentage of sales is always 40%. Based on these figures, what is the sales revenue for the year?

• A. Rs. 23,81,250
• B. Rs. 15,87,500
• C. Rs. 13,33,500
• D. None of the above

Answer 1

The correct option is B

Rs. 15,87,500

Opening Stock	3,86,200
Add: Purchases	9,89,000
Less: Closing Stock	(4,22,700)
Cost of Goods Sold	9,52,500

Sales
= $Rs.9,52,500\times \frac{100}{60}$ = Rs. 15,87,500