Question

If cash sales is ₹1,50,000 and credit sales is 25% of total sales. The amount of credit sales is:

[0.88 marks]

• A. ₹50,000
• B. ₹2,00,000
• C. ₹37,500
• D. ₹75,000

Answer 1

The correct option is A ₹50,000

Total Sales = Cash Sales + Credit Sales

Total Sales = ₹1,50,000 + 0.25 Total Sales

Cash Sales = ₹1,50,000 = 0.75 Total Sales

Total Sales $=\frac{\text{Cash Sales}}{0.75}$

$=\frac{1,50,000}{0.75}$

= ₹ 2,00,000

Credit Sales = Total Sale – Cash Sale

= ₹2,00,000 – ₹1,50,000

= ₹50,000