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Question : From the following details, Closing Inventory Rs. 60,000;
Total Revenue from Operations Rs.5,00,000 (including cash revenue from operations Rs. 1,00,000 ); Total purchases Rs.3,00,000 (including credit purchases Rs.60,000). Goods are sold at a profit of 25% on cost. Calculate opening inventory.

Option 1: Rs 1,40,000

Option 2: Rs 1,50,000

Option 3: Rs 1,60,000

Option 4: Rs 80,000


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Rs 1,60,000


Solution : Answer = Rs 1,60,000

Op. inventory + Purchases + D.Exp + Gross profit = Net sale + closing stock
⇒ Op. inventory + 3,00,000 + Nil + 1,00,000 = 5,00,000 + 60,000
⇒ Op. inventory = 5,60,000 - 4,00,000 = 1,60,000

COGS + G.P = Net sales
⇒ $x+\frac{x}{4}$= 5,00,000

⇒ $\frac{5x}{4}$= 5,00,000

⇒ $x$ = 4,00,000.
Cost of revenue from operation= 4,00,000.
G.P = 1,00,000.
Hence, the correct option is 3.

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