CA CPT Model Test Paper 3 with solutions for online practice

Mohan purchased goods for Rs. 15,00,000 and sold $\frac{4}{5}$ th of the goods amounting Rs. 18,00,000 and met expenses amounting Rs. 2,50,000 during the year, 2011. He counted net profit as Rs. 3,50,000. Which of the accounting concept was followed by him?