Question

The following are the figures relating to a trader:
Opening stock - $Rs.10,000$
Closing stock - $Rs.11,000$
Purchase - $Rs.70,000$
The goods are sold at a profit of $30$% on cost. The amount of sales will be ____________.

• A. $Rs.1,04,000$
• B. $Rs.91,000$
• C. $Rs.89,700$
• D. $Rs.21,000$

Answer 1

Answer: (C)

$Rs.89,700$

Cost of Goods Sold can be be calculated as per given equation:

Opening Stock + Purchases - Closing Stock = Cost of Goods Sold

Rs.10000 + Rs.70000 - Rs. 11000

Cost of Goods Sold = Rs. 69000

In the given problem, sales is done with a profit of 30% on cost, hence

Sales = Cost of goods sold + 30% of cost of goods sold

Sales = Rs.69000 + 30% of Rs.69000

Sales = Rs.69000 + Rs.20700

Sales = Rs.89700