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Started business with cash 2,00,000
purchased goods for cash 60,000 on credit 1,50,000
sold goods on cash costing 40,000 at a profit of 20% and on credit costing 72,000 at a profit of 25%
paid for rent 5,000?
Most Upvoted Answer
Started business with cash 2,00,000purchased goods for cash 60,000 on ...
Initial Investment:
- The business started with a cash investment of 2,00,000.

Purchase of Goods:
- Goods were purchased for 60,000 in cash and 1,50,000 on credit.

Sale of Goods:
- Goods costing 40,000 were sold for cash at a profit of 20%.
- Goods costing 72,000 were sold on credit at a profit of 25%.

Expenses:
- Rent of 5,000 was paid.

Calculation of Profits:
- Profit on goods sold for cash = 40,000 * 20% = 8,000.
- Profit on goods sold on credit = 72,000 * 25% = 18,000.

Overall Profit Calculation:
- Total profit = 8,000 (cash sale) + 18,000 (credit sale) = 26,000.

Net Profit:
- Net profit = Total profit - Expenses = 26,000 - 5,000 = 21,000.
By following these steps, the business can effectively track its investments, sales, profits, and expenses to ensure sustainable growth and success.
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Started business with cash 2,00,000purchased goods for cash 60,000 on credit 1,50,000sold goods on cash costing 40,000 at a profit of 20% and on credit costing 72,000 at a profit of 25%paid for rent 5,000?
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Started business with cash 2,00,000purchased goods for cash 60,000 on credit 1,50,000sold goods on cash costing 40,000 at a profit of 20% and on credit costing 72,000 at a profit of 25%paid for rent 5,000? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Started business with cash 2,00,000purchased goods for cash 60,000 on credit 1,50,000sold goods on cash costing 40,000 at a profit of 20% and on credit costing 72,000 at a profit of 25%paid for rent 5,000? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Started business with cash 2,00,000purchased goods for cash 60,000 on credit 1,50,000sold goods on cash costing 40,000 at a profit of 20% and on credit costing 72,000 at a profit of 25%paid for rent 5,000?.
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