Multiple choice

The physical stock in the business as on 5 April was Rs. 95,750. During 1st to 5th April, there was a purchase of goods for Rs. 15,000, while goods sold for Rs. 20,000 were at a profit of 25% on cost. Find the physical stock as on 31 March.

  1. Rs. 1,00,750

  2. Rs. 90,750

  3. Rs. 94,750

  4. Rs. 96,750
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stock as on 5th April - Purchases + Cost of sales during the period 1st to 5th April. Cost of sales = 20,000 - 4000 (i.e. 1/5th of 20,000) = Rs. 16,000 Thus, 95750 - 15000 + 16000 = 96750 (A) 95750 - 15000 + 20000 = 100750 (B) 95750 + 15000 - 20000 = 90750 (C) 95750 + 15000 - 16000 = 94750 are incorrect answers.

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