Read the following information and answer the following question.

Calculate cost of revenue from operations if gross profit is 25%.

₹3,00,000

The correct answer is option 2- ₹3,00,000.

COST OF REVENUE FROM OPERATIONS = Revenue from operations - gross profit
                                                                  = 4,00,000 - 25% of 4,00,000
                                                                  = 4,00,000 - 1,00,000
                                                                  = ₹3,00,000

*Revenue from operations = Credit sales + Cash sales - Return inwards
                                           = 2,70,000 + 1,50,000 - 20,000
                                           = ₹4,00,000