Question
Opening Stock
₹ 2,00,000 Closing Stock ₹ 2,20,000 Purchases during the year ₹ 14,00,000 Goods are sold at a profit of 30% on cost. Calculate 'Revenue from operations'.Solution
COGS = Op Stock + Purchases + Direct Exp – Closing Stock 200000 + 1400000-220000 = 1380000 profit is given as 30% on cost Revenue = COGS + 30% = 1380000 + 30% = 17,94,000
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