Question

goods costing 12000 sold for 15000 sellingexpenses incurred 500​

Answer 1

Explanation:

Answer:

debtor a/c

to sales a/c

(being goods sold )

selling expenses a/c

to cash a/c

(being selling expenses incurred )

Answer 2

                                                JOURNAL ENTRIES

1.)   Cash A/c                              -----dr                                        15,000

          To Sales A/c                                                                                12,000

          To Profit on Sale of Goods A/c                                                  3,000

                                  (Being goods sold on Profit)

2.)  Selling Expense A/c          -----dr                                             500

            To Cash A/c                                                                                500

                                 ( Being selling expenses incurred)

• When the selling price of goods is more than the cost of goods it is said to be sold on profit.
• The expenses incurred during the operation that is selling goods are paid in cash directly by the firm.

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