Question

Cost of goods sold = Rs. 2,40,000; Gross loss $-\frac{1}{4}$ of sales. What is the amount of sales ?

• A. Rs. 1,00,000
• B. Rs. 1,92,000
• C. Rs. 1,44,000
• D. Rs. 1,50,000

Answer 1

The correct option is B Rs. 1,92,000

This can be calculated with the below equation:

Sales - Cost of Goods Sold = Gross Profit / Loss

In the given situation

Cost of Goods sold = Rs.240000 and Gross Loss is 25% of Sales

Assume that Sales is 100, and the loss is 25

Than cost of goods sold = Sales + Gross Loss

= 100 + 25

= 125

Hence Sales will be:

Cost of Goods Sold / 125 *100

= Rs.240000 *100

125

Sales = Rs.192000