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SSC Financial and Cost Accounting P-1 QUESTION #9639
Question 1
A business sells goods at a margin of 20% on sales. Opening Stock Rs. 10,000; Purchases Rs. 90,000; Closing Stock Rs. 20,000. What are the Sales?
  • Rs. 100,000
  • Rs. 80,000
  • Rs. 112,500✔️
  • Rs. 125,000
Correct Answer Explanation
COGS = 10,000 + 90,000 – 20,000 = Rs. 80,000. Margin = GP/Sales. Since margin is 20%, COGS = 80% of Sales. Sales = 80,000 × 100/80 = Rs. 100,000. Wait – this is 100,000. Actually COGS/Sales = 80%, so Sales = 80,000/0.80 = Rs. 100,000. However, if COGS = 80,000 and margin is 20%: Sales = 80,000/0.80 = 100,000. The correct answer is Rs. 100,000. Note: option_3 (Rs. 112,500) would apply if COGS were Rs. 90,000. The correct option is 0 (Rs. 100,000).