Question

    Goods purchased ₹1,00,000. Sales ₹90,000. Margin 20%

    on cost. Closing Inventory = ?
    A ₹20,000 Correct Answer Incorrect Answer
    B ₹10,000 Correct Answer Incorrect Answer
    C ₹25,000 Correct Answer Incorrect Answer
    D ₹15,000 Correct Answer Incorrect Answer

    Solution

    Let Cost = 100, Margin = 20%, so Sales = ₹120. Cost to Sales ratio = 100 / 120 = 5/6 Given Sales = ₹90,000 → Cost of Sales = 90,000 × 5/6 = ₹75,000 Purchases = ₹1,00,000 Closing Inventory = 1,00,000 - 75,000 = ₹25,000

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