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Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.The amount of gross profit is
  • a)
    Rs. 1,90,000
  • b)
    Rs.2,50,000
  • c)
    Rs.2,40,000
  • d)
    Rs.2,00,000
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 durin...
Given information:
- Prakash sells goods at 25% on sales
- His sales were Rs.10,20,000 during the year
- He sold damaged goods for Rs.20,000 costing Rs.30,000
- This sale is included in Rs.10,20,000

To find: Gross Profit

Calculation:
- Gross profit = Sales - Cost of goods sold
- Sales = Rs.10,20,000
- Cost of goods sold = (Rs.10,20,000 - Rs.20,000) / (1 + 25%) + Rs.30,000
(Note: damaged goods were sold at cost price)
- Cost of goods sold = Rs.8,16,000
- Gross profit = Rs.10,20,000 - Rs.8,16,000
- Gross profit = Rs.2,04,000

Answer:
The amount of gross profit is Rs.2,40,000 (Option C)
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Community Answer
Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 durin...
B) Rs.2,40,000
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Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.The amount of gross profit isa)Rs. 1,90,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.2,00,000Correct answer is option 'C'. Can you explain this answer?
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Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.The amount of gross profit isa)Rs. 1,90,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.2,00,000Correct answer is option 'C'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.The amount of gross profit isa)Rs. 1,90,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.2,00,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Prakash sells goods at 25% on sales. His sales were Rs.10,20,000 during the year. However, he sold damaged goods for Rs.20,000 costing Rs.30,000. This sale is included in Rs.10,20,000.The amount of gross profit isa)Rs. 1,90,000b)Rs.2,50,000c)Rs.2,40,000d)Rs.2,00,000Correct answer is option 'C'. Can you explain this answer?.
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