Question

goods costing 1800 sold to pappu after adding 10% profit on sale.

Answer 1

Cost Of Goods Sold = Rs.1800

Profit = 10% ( Rs.1800) = Rs.180

Sale Value = Rs.1800 + Rs.180 = Rs.1,980

Journal Entry :

Pappu A/C    Dr     Rs.1,980

  To  Sales A/C     Rs.1,980

(Being goods sold to pappu on credit)

Explanation :

We sold goods to Pappu on credit. Pappu is our debtor . Hence debited.

Sales should be always credited with Sale Value ( Cost + Profit). Cost of goods sold is irrelevant.