Question

The following are the figures relating to a trader:

Opening stock	$Rs.1,00,000$
Closing stock	$Rs.1,10,000$
Purchase	$Rs.7,00,000$

The goods are sold at a profit of $30$% on cost. The amount of sales will be_________.

• A. $Rs.10,40,000$
• B. $Rs.9,10,000$
• C. $Rs.8,97,000$
• D. $Rs.2,10,000$

Answer 1

The correct option is C $Rs.8,97,000$

Solution will be as under:

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

Cost of Goods Sold= Rs.100000+Rs.700000-Rs.110000

Cost of goods sold= Rs.690000

Gross Profit @30% on Cost= Rs.690000*30%

Gross Profit=Rs.207000

Sales=Cost of Goods Sold+Gross Profit

=Rs.690000+Rs.207000

Sales = Rs.897000