Furniture costing rs 40000 sold at a loss of 10℅ .60 ℅ amount received by a/c payee cheque and balance in cash
Answers
Answer:
Explanation:
21600 by A/c payee
14400 by cash
Answer:
Cash is Rs 14,400
Bank is Rs 21,600
Explanation:
The furniture cost Rs 40,000 but it is sold on loss of 10%. So, the company had a loss on sale of assets which amounts to Rs 4,000. The journal entry is as:
Bank A/c......................................Dr Rs 21,600
Cash A/c......................................Dr Rs 14,400
Loss on Sale of Furniture.........Dr Rs 4,000
To Furniture A/c.............Cr Rs 40,000
Working Note:
Loss on sale = Furniture cost × Loss percentage
= Rs 40,000 × 10%
= Rs 4,000
Bank = Selling Price × 60%
= Rs 36,000 × 60%
= Rs 21,600
Cash = Selling Price × 40%
= Rs 36,000 × 40%
= Rs 14,400