Multiple choice

Madhav consigns goods of the cost price Rs. 1, 20,000 to Divesh at proforma invoice price showing 20% profit on invoice price. Calculate the invoice value of goods sent to Divesh.

  1. Rs. 1, 50,000

  2. Rs. 1,44,000

  3. Rs. 90,000

  4. Rs. 1,40,000

  5. Rs. 1,00,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Cost price of goods is Rs. 1,20,000. Plus loading 20% on invoice price, i.e. 1/5th of invoice price = 1/4th of cost price, i.e. 1/4 * 1,20,000 = Rs. 30,000. Thus, invoice price of goods = 1,20,000 + 30,000 = Rs. 1,50,000

Keep practicing — related questions