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Question : The Gross Profit Ratio of a Company is 20%. Which of the following transactions will decrease?

Option 1: Purchase of goods Rs. 1,00,000.

Option 2: Goods costing Rs. 10,000 withdrawn for personal use.

Option 3: Goods costing Rs. 15,000 distributed as free samples.

Option 4: None of the above


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: None of the above


Solution : Answer = None of the above

In all of these transactions, both Purchase and Cl. Stock will be increased or decreased by the same amount. Therefore, the cost of Revenue from the operation will not change.
Hence, the correct option is 4.

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