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A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:
  • a)
    Rs. 3,125
  • b)
    Rs. 2,500
  • c)
    Rs. 3,000
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at R...
Given information:
- Cost of goods purchased by A = Rs. 42,500
- Cost of goods sold by B = Rs. 40,000
- Selling price of goods sold by B = Rs. 50,000
- Gross profit percentage on goods sold by B = (50,000 - 40,000)/40,000 * 100 = 25%

To find:
- Cost of goods taken over by A

Solution:
1. Let's first calculate the gross profit earned by B on the goods sold:
- Gross profit = Selling price - Cost price = 50,000 - 40,000 = Rs. 10,000
- Gross profit percentage = Gross profit/Cost price * 100 = 10,000/40,000 * 100 = 25%

2. Now, we can use this gross profit percentage to find the cost of goods taken over by A:
- Let x be the cost of goods taken over by A
- Gross profit on these goods = 25% of x
- Since B and A are selling and buying the goods at the same gross profit percentage, the cost price for A will be:
Selling price for B - Gross profit for B = Cost price for A
50,000 - 25% of x = x
50,000 - 0.25x = x
0.75x = 50,000
x = 50,000/0.75
x = Rs. 66,666.67

3. However, this is the cost of all the remaining goods, including the goods sold by B. To find the cost of goods taken over by A, we need to subtract the cost of goods sold by B:
Cost of goods taken over by A = Total cost - Cost of goods sold by B
Cost of goods taken over by A = Rs. 66,666.67 - Rs. 40,000
Cost of goods taken over by A = Rs. 26,666.67

4. But the question asks for the amount of goods taken over, not the cost. We can find this by dividing the cost by the cost per unit:
Amount of goods taken over by A = Cost of goods taken over by A/Cost per unit
Cost per unit = Cost of goods purchased by A/Number of units purchased by A
Cost per unit = Rs. 42,500/?
We don't know the number of units purchased by A, so we can't find the cost per unit directly. However, we can use the fact that B sold goods at a higher price than their cost to estimate the cost per unit for A:
- B sold goods worth Rs. 50,000, so the number of units sold = 50,000/Cost per unit
- B's cost per unit = Rs. 40,000/Number of units sold
- B's selling price per unit = Rs. 50,000/Number of units sold
- B's gross profit per unit = Rs. 10,000/Number of units sold
- A's cost per unit = B's selling price per unit - B's gross profit per unit
A's cost per unit = (50,000/Number of units sold) - (10,000/Number of units sold)
A's cost per unit = 40,000/Number of units sold

5.
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Community Answer
A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at R...
Here we have to find out value of goods taken over after considering gp {at invoice price} we can calculate as follows as per traditional method 40000 pr 2500 hai! to 50000 pr kitna??? cross multiplying them we got ans !! 50000×2500/40000 #3125#
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A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:a)Rs. 3,125b)Rs. 2,500c)Rs. 3,000d)NoneCorrect answer is option 'A'. Can you explain this answer?
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A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:a)Rs. 3,125b)Rs. 2,500c)Rs. 3,000d)NoneCorrect answer is option '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 A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:a)Rs. 3,125b)Rs. 2,500c)Rs. 3,000d)NoneCorrect answer is option '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 A purchased goods costing 42,500. B sold goods costing Rs. 40,000 at Rs. 50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:a)Rs. 3,125b)Rs. 2,500c)Rs. 3,000d)NoneCorrect answer is option 'A'. Can you explain this answer?.
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