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Goods costing Rs 75000 sold at the profit of 25% out of which 57500 received in cash?
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Goods costing Rs 75000 sold at the profit of 25% out of which 57500 re...
Explanation of the Transaction


Cost of Goods Sold


  • Cost of Goods Sold: Rs 75,000



Profit Margin


  • Profit Margin: 25%

  • Profit Earned: Rs 75,000 x 0.25 = Rs 18,750



Selling Price


  • Selling Price: Rs 75,000 + Rs 18,750 = Rs 93,750



Payment Received


  • Payment Received: Rs 57,500

  • Balance Amount: Rs 93,750 - Rs 57,500 = Rs 36,250



Reason for the Cash Transaction


  • The cash transaction was made due to the preference of the buyer or seller.

  • The buyer may have wanted to pay in cash for convenience or to avoid transaction fees.

  • The seller may have preferred cash to avoid delays in receiving payment or to have immediate funds for business purposes.



Conclusion


  • The transaction resulted in a profit of Rs 18,750.

  • The payment of Rs 57,500 was received in cash.

  • The balance amount of Rs 36,250 may have been received through another mode of payment such as a bank transfer or cheque.

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Goods costing Rs 75000 sold at the profit of 25% out of which 57500 received in cash?
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