Multiple choice

Furniture costing Rs. 20,000 is sold at a profit of Rs. 2,000 for cash. It will result in

  1. inflow of cash of Rs. 20,000

  2. inflow of cash of Rs. 22,000

  3. outflow of cash of Rs. 20,000

  4. outflow of cash of Rs. 22,000

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It will result in inflow of cash of Rs. 22,000. The cost of furniture is Rs. 20,000 and is sold at a profit of Rs. 2,000. Hence, the inflow of cash would be Rs. 22,000. Selling price = Cost price + Profit Cost price is Rs. 20,000 and profit is Rs. 2,000. Hence, selling price is Rs. 20,000 + Rs. 2,000 =  Rs. 22,000.
The price at which the furniture is sold is Rs. 22,000 would be the inflow of cash.