CUET UG 2025 — Accountancy Financial Statements

Finding Cost of Revenue from Operations:

$$\text{Inventory Turnover Ratio} = \frac{\text{Cost of Revenue from Operations}}{\text{Average Inventory}}$$Inventory Turnover Ratio=Average InventoryCost of Revenue from Operations​

$$8 = \frac{\text{Cost of Revenue from Operations}}{40,000}$$8=40,000Cost of Revenue from Operations​

Cost of Revenue from Operations = 8 × 40,000 = Rs. 3,20,000

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Finding Revenue from Operations:

Given that profit is 20% on Revenue from Operations (Sales).

If Revenue from Operations = $S$S, then Gross Profit = 20% of $S$S = 0.20$S$S

Using the relationship:
Revenue from Operations = Cost of Revenue from Operations + Gross Profit

$$S = 3,20,000 + 0.20S$$S=3,20,000+0.20S

$$S - 0.20S = 3,20,000$$S−0.20S=3,20,000

$$0.80S = 3,20,000$$0.80S=3,20,000

$$S = 4,00,000$$S=4,00,000

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Calculating Gross Profit:

Gross Profit = 20% of Revenue from Operations

Gross Profit = 20% × 4,00,000 = Rs. 80,000

The answer is Option 4: Rs. 80,000