Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions WFJ7J3A84P
Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Accounting Ratios

Question:

Read the following passage and answer the 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 ₹1,40,000
3) Cash purchase was 25% of credit purchase
4) Cash purchase was ₹50,000
5) Opening inventory ₹30,000
6) Closing inventory was ₹10,000 more than opening inventory
7) Carriage inwards is ₹12,000 & Non current liabilities is ₹80,000
8) Total assets is ₹8,00,000 & fixed assets is ₹5,40,000
9) Non-current investments ₹1,10,000 & Shareholders funds ₹6,00,000

 

Calculate the total purchase of the company.

Options:

₹1,50,000

₹3,50,000

₹2,50,000

₹4,50,000

Correct Answer:

₹2,50,000

Explanation:

The correct answer is option 3- ₹2,50,000.

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 ₹50,000, Total purchase = 125/25 X 50,000 = ₹2,50,000

CUET Questions