Question

Accounting Title If Gross Profit is Rs.80,000 which is 20% of sales, then the amount of sale is:​

Answer 1

Answer:

Amount of Sales = ₹4,00,000

Explanation:

Let the amount of sales be x.

According to question,

Gross Profit 20% of x = ₹80,000

(20/100) × x = 80,000

x/5 = 80,000

x = 80,000×5

x = 4,00,000

Sales = ₹4,00,000

Answer 2

Answer:

The amount of Sales is Rs. 4,00,000

Explanation:

Solution :

Gross Profit = Rs. 80,000

20 % of Sales = Gross Profit

20 % of Sales = 80,000

Let,

Net Sales = x

⇒ 20 % of x = 80,000

⇒ (20x/100) = 80,000

⇒ 0.2x = 80,000

⇒ x = 80,000/0.2

⇒ x = 8,00,000/2

⇒ x = 4,00,000

Net Sales = Rs. 4,00,000

★ Verification :

Gross Profit = Rs. 80,000

Which is 20% of Sales

Net Sales = Rs. 4,00,000

⇒ 400,000 × (20/100) = 80,000

Therefore,

The amount of Sales is Rs. 4,00,000