Pcc nov 2011 fully solved and analysed by kk

• thank you sir waiting for solution thank you very much sir

sir please refer , solution for the problem number :1(d) ----> i think calculations are wrong or any assumptions are implied which is not explained ?

please explain how profit margin 37500 ?

and 23488-11250 = 12188 ?  here also is there any assumptions ? for arriving such answer ?

thank you sir

Mr. Khanna pls write below the pics. It will be easy for me to answer and others can also understand.

I will writing below the pics and here also

The question itself has given profit margin 20% of sales value. From back calculation profit margin shall be 25% of cost price i.e 25% of 1,50,000 = 37,500. ITC available 11,250. Rule is ITC is available on local purchase. But if finished goods is exempt ITC is not available. therefore 25% ITC not available.