Multiple choice

Mr. Rishi sells goods at 20% above cost. His sales were Rs. 10,20,000 during the year. However, he sold damaged goods for Rs. 20,000 costing Rs. 30,000. This sale is included in Rs. 10,20,000. The amount of gross profit is

  1. Rs. 1,90,000

  2. Rs. 2,50,000

  3. Rs. 1,56,667

  4. Rs. 2,00,000

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

Correct Answer: Out of total sales, normal goods sold are Rs. 10,00,000 where the profit is 20% of cost and thus, 1/6 of sales, i.e. Rs. 1,66,667 but there is loss in damage goods of Rs. 10,000. Thus, net profit = Rs. 1,56,667.