Question

Q 51 Following information are obtained from
the records of Rukmani Enterprise for the
year ended 31.03.2020:
- Sales 5000000
- Purchases 3800000
- Opening stock 750000 and Closing
stock 420000.
Some goods were destroyed by fire during
the year. If the firm's rate of gross profit is
25 percent on cost then value of goods
destroyed by fire will be-
Ops: A.
330000
B.
220000
C.
130000
D. O530000​

Answer 1

Answer:

cost of goods sold = sales - gross profit

x =. 5000000 - x× 25/100

x+x/4 = 5000000

5x/4 = 5000000

x. = 4000000

cost of goods sold = opening stock + purchase - closing stock

4000000. = 750000 + 3800000 - closing stock

closing stock = 550000

closing stock after loss by fire = 420000

loss by fire = 550000- 420000

= 130000

option c is correct