If Cost of Goods Sold (COGS) is Rs 1,50,000 and Gross Profit is 20% on Sales, what is the Sales value? MCQ with Answer and Explanation

Question

Share Report Error

If Cost of Goods Sold (COGS) is Rs 1,50,000 and Gross Profit is 20% on Sales, what is the Sales value?

A. Rs 1,80,000

B. Rs 1,75,000

C. Rs 1,87,500

D. Rs 2,00,000

Answer: Option C

Solution (By JKSSB Mock Tests)

If GP is 20% on sales, COGS is 80% on sales. Sales = COGS / 80% = 1,50,000 / 0.8 = Rs 1,87,500.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1

The 'TDS' under GST is applicable to:

A. Only services

B. Only goods

C. Specified government agencies and entities for supplies exceeding ₹2.5 lakh

D. All supplies

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
GST TDS is deducted by certain government departments/agencies at 2% on contracts exceeding ₹2.5 lakh.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Under the Income Tax Act, the 'TDS' on payment of rent for plant and machinery exceeding ₹1,80,000 per annum is governed by which section, and what is the rate?

A. Section 194I at 10%

B. Section 194C at 2%

C. Section 194J at 10%

D. Section 194I at 2%

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Section 194I(a) mandates TDS at 2% on rent paid for the use of plant, machinery, or equipment, provided the rent exceeds ₹1,80,000 in a financial year.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The 'Group Engagement Partner' is responsible for:

A. Tax filing

B. Component audit only

C. Only his own work

D. Overall group audit opinion and direction, supervision, and performance of the group audit engagement

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
The engagement partner takes overall responsibility.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Explore All Accountancy and Book Keeping MCQs