A trader values his opening stock 10% over cost. It value of opening stock is written as Rs. 27,500 then its cost would be

The correct answer is B. Rs. 24,750.

Let C.P. = Rs. x.
Then, M.P. = Rs. 110x/100 = Rs. 27,500.
∴ S.P. = Rs. 27,500.
∴ Gain = Rs. (27,500 – x)
But, Gain = 10% of C.P. = 10/100 x = Rs. x/10
∴ x/10 = 27,500 – x
⇒ 2x = 275,000
⇒ x = 137,500
∴ C.P. = Rs. 137,500.

Explanation of each option:

Option A: Rs. 30,000. This is not the correct answer because the cost price is always less than the selling price.

Option B: Rs. 24,750. This is the correct answer because the cost price is equal to the selling price minus the profit.

Option C: Rs. 25,000. This is not the correct answer because the cost price is always less than the selling price.

Option D: Rs. 22,500. This is not the correct answer because the cost price is always less than the selling price.