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Home Questions WFJ7J3A84P
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

ABC Ltd has a business of shoes in New Delhi. From the last year profits of the company has reduced so the company wants to know the earning capacity and liquidity position of its company so that it can take correct measures. Following information is available to the company.

1) Cash revenue from operations was 1/3rd of total revenue from operations
2) Cash revenue from operations was ₹140000
3) Cash purchase was 25% of credit purchase
4) Cash purchase was ₹50000
5) Opening inventory ₹30000
6) Closing inventory was ₹10000 more than opening inventory
7) Carriage is ₹12000 & Non current liabilities is ₹80000
8) Total assets is ₹800000 & fixed assets is ₹540000
9) Non-current investments ₹110000 & Shareholders funds ₹600000

Calculate the total purchase of the company.

Options:

₹150000

₹350000

₹250000

₹450000

Correct Answer:

₹250000

Explanation:

The correct answer is option 3- ₹250000.

If cash purchase is ₹25, then Credit purchase will be ₹100 and hence total purchase will be ₹125
If cash purchase is ₹25, then total purchase will be ₹125
If cash purchase is ₹50000, Total purchase = 125/25 X 50000 = ₹250000

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