Calculate credit revenue from operations using following information:
Total revenue from operations: ₹4,00,000
Cash received from operations are 25% of Credit revenue from operations.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 3,20,000
Total revenue from operations = cash revenue + credit revenue. Here the cash part is given as a percentage of the credit part, not of the total, so take credit revenue as x.
Credit revenue = x
Cash revenue = 25% of x = 0.25x
x + 0.25x = Rs. 4,00,000
1.25x = Rs. 4,00,000
x = Rs. 4,00,000 ÷ 1.25 = Rs. 3,20,000
Check: cash revenue = 25% of Rs. 3,20,000 = Rs. 80,000, and Rs. 3,20,000 + Rs. 80,000 = Rs. 4,00,000. Taking 25% of the total (Rs. 1,00,000) as cash would give Rs. 3,00,000, which is not what the question says.
NCERT (2026-27 edition):
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