Question

Cost of goods sold Rs. 1,20,000, Gross Loss 1/4 of sales. What will be the amount of sales?

• A. $90,000$
• B. $96,000$
• C. $1,44,000$
• D. $1,50,000$

Answer 1

The correct option is B $96,000$

This can be resolved as below:

Let us assume Cost of Goods Sold is 100

Gross Loss is 1/4 of the sales i.e. 25

Therefore

Sales=Cost of goods sold+Gross Loss

= 100+25

Sales becomes

Cost of goods Sold/125*100

Sales = Rs.96000/-