Question

Consider the following data pertaining to H Ltd. for the month of March $2005$.

Particulars	As on March $01$, $2005$(Rs.)	As on March $31$, $2005$ (Rs.)
Stock	$1,80,000$	$90,000$

The company made purchases amounting Rs. $3,30,000$ on credit. During the month of March $2005$, the company paid a sum of Rs. $3,50,000$ to the suppliers. The goods are sold at $25\%$ above the cost. The sales for the month of March $2005$ were.

• A. Rs. $4,12,500$
• B. Rs. $5,25,000$
• C. Rs. $90,000$
• D. Rs. $3,15,000$

Answer 1

Answer: (B)

Rs. $5,25,000$

This can be solved as below:

Cost of goods sold = Op Stock+ Purchases-Closing Stock

= Rs.180000+Rs.330000-Rs.90000

=Rs.420000

Goods is sold at 25% above the cost, hence

Cost of goods sold +25% of Cost of goods sold

Rs.420000+ 25% of Rs.420000

= Rs.525000/- is the sales for March 2005.