Cost of goods sold is Rs. 1,20,000 and gross loss is 1/4 of sales. The amount of sales will be

Let Sales $= S$. Given Gross Loss $= \frac{1}{4}S$ and Cost of Goods Sold (COGS) $= \text{Rs. } 1,20,000$. Since $\text{Sales} = \text{COGS} - \text{Gross Loss}$, we have $S = 1,20,000 - 0.25S \implies 1.25S = 1,20,000 \implies S = \frac{1,20,000}{1.25} = \text{Rs. } 96,000$.