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Can someone explain me why there is the amount of 1/5*20,000 being reduced from 20,000. Also how did we get 1/5?

Doonika Chunduri

CA Inter

★ 5K+

05-Nov-21 19:05

442

Answers (5)

Kyunki Cost of goods sold find krna hey. 31st March ka stock find krne k liye sabhi sales at cost par lani padegi

CHART Analysis

CA Inter

★ 25

05-Nov-21 19:10

25% on cost = 20%(1/5) on sales

CHART Analysis

CA Inter

★ 25

05-Nov-21 19:12

Actually it is a trick used to easily calculate profit on sales when you have profit % on cost https://youtu.be/kVesIjn83T4 The trick is explained in this video starting from 12.00 - 20.47 It's helped me to calculate fastly Video quality is average but u can understand just by hearing it

Dharshini Sankar

CA Inter

★ 7K+

05-Nov-21 20:15

Thank you

Thread Starter

Doonika Chunduri

CA Inter

★ 5K+

05-Nov-21 20:19

Hmm

Balachandar S

CA Inter

★ 59K+

08-Nov-21 17:14