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100 articles at the sale price of Rs. 200 each sent to a customer on approval basis were recorded as actual sales on that price. The sale price was made cost plus 25%. The amount of inventory on approval will be
  • a)
    16,000
  • b)
    20,000
  • c)
    15,000
  • d)
    none
Correct answer is 'A'. Can you explain this answer?
Most Upvoted Answer
100 articles at the sale price of Rs. 200 each sent to a customer on a...
Calculation of Cost Price
- Sale price = Rs. 200
- Sale price = Cost price + 25% of cost price
- 200 = 1.25x
- Cost price (x) = Rs. 160

Calculation of Inventory on Approval
- 100 articles were sent on approval basis
- Cost price per article = Rs. 160
- Total cost of 100 articles = Rs. 16,000

Therefore, the amount of inventory on approval will be Rs. 16,000.
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Community Answer
100 articles at the sale price of Rs. 200 each sent to a customer on a...
First multiply the total no of articles with price of each, then multiply by sale % + 100 as cost is included in sale price 100 × 200 = 20000 × 25 / 125 = 4000 ; 20000 -- 4000 = 16000
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100 articles at the sale price of Rs. 200 each sent to a customer on approval basis were recorded as actual sales on that price. The sale price was made cost plus 25%. The amount of inventory on approval will bea)16,000b)20,000c)15,000d)noneCorrect answer is 'A'. Can you explain this answer?
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100 articles at the sale price of Rs. 200 each sent to a customer on approval basis were recorded as actual sales on that price. The sale price was made cost plus 25%. The amount of inventory on approval will bea)16,000b)20,000c)15,000d)noneCorrect answer is 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 100 articles at the sale price of Rs. 200 each sent to a customer on approval basis were recorded as actual sales on that price. The sale price was made cost plus 25%. The amount of inventory on approval will bea)16,000b)20,000c)15,000d)noneCorrect answer is 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 100 articles at the sale price of Rs. 200 each sent to a customer on approval basis were recorded as actual sales on that price. The sale price was made cost plus 25%. The amount of inventory on approval will bea)16,000b)20,000c)15,000d)noneCorrect answer is 'A'. Can you explain this answer?.
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