Read the following information and answer the following question.
| PARTICULARS | AMOUNT (₹) |
| Credit sales | 2,70,000 |
| Cash sales | 1,50,000 |
| Return Inwards | 20,000 |
| Cost of revenue from operations | 3,00,000 |
| Closing inventory | 45,000 |
| Opening inventory | 55,000 |
Calculate cost of revenue from operations if gross profit is 25%.
Answer & explanation
Correct answer: option 2
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