Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

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 revenue from operations.

Options:

₹4,00,000

₹4,50,000

₹5,00,000

₹5,50,000

Correct Answer:

₹4,00,000

Explanation:

The correct answer is option 1- ₹4,00,000.

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