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Opening stock    Rs. 10,000
Purchases         Rs. 1,10,000
Closing Stock    Rs. 20,000
Find out total sales if profit margin is 30% on cost of sales : 
  • a)
    Rs. 1,20,000
  • b)
    Rs. 1,30,000
  • c)
    Rs. 1,10,000
  • d)
    Rs. 1,25,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Opening stock Rs. 10,000Purchases Rs. 1,10,000Closing Stock Rs. ...
COGS=OPENING STOCK +PURCHASE- CLOSING STOCK
=10000+110000-20000=100000 sales =cost +profit =100000+30000 =130000
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Community Answer
Opening stock Rs. 10,000Purchases Rs. 1,10,000Closing Stock Rs. ...
Given:
- Opening stock = Rs. 10,000
- Purchases = Rs. 1,10,000
- Closing stock = Rs. 20,000
- Profit margin = 30% on cost of sales
To find: Total sales

Calculations:
1. Cost of goods sold (COGS) = Opening stock + Purchases - Closing stock
COGS = Rs. 10,000 + Rs. 1,10,000 - Rs. 20,000
COGS = Rs. 1,00,000

2. Profit on cost = 30% of COGS
Profit on cost = 0.3 x Rs. 1,00,000
Profit on cost = Rs. 30,000

3. Selling price = COGS + Profit on cost
Selling price = Rs. 1,00,000 + Rs. 30,000
Selling price = Rs. 1,30,000

Therefore, the total sales would be Rs. 1,30,000, which is option (b)
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Opening stock Rs. 10,000Purchases Rs. 1,10,000Closing Stock Rs. 20,000Find out total sales if profit margin is 30% on cost of sales :a)Rs. 1,20,000b)Rs. 1,30,000c)Rs. 1,10,000d)Rs. 1,25,000Correct answer is option 'B'. Can you explain this answer?
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Opening stock Rs. 10,000Purchases Rs. 1,10,000Closing Stock Rs. 20,000Find out total sales if profit margin is 30% on cost of sales :a)Rs. 1,20,000b)Rs. 1,30,000c)Rs. 1,10,000d)Rs. 1,25,000Correct answer is option 'B'. 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 Opening stock Rs. 10,000Purchases Rs. 1,10,000Closing Stock Rs. 20,000Find out total sales if profit margin is 30% on cost of sales :a)Rs. 1,20,000b)Rs. 1,30,000c)Rs. 1,10,000d)Rs. 1,25,000Correct answer is option 'B'. 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 Opening stock Rs. 10,000Purchases Rs. 1,10,000Closing Stock Rs. 20,000Find out total sales if profit margin is 30% on cost of sales :a)Rs. 1,20,000b)Rs. 1,30,000c)Rs. 1,10,000d)Rs. 1,25,000Correct answer is option 'B'. Can you explain this answer?.
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