Question

Goods costing 30,000 supplied to Mohan at 25% profit of sales price less Trade Discount 5% will be credited to sales A/c with:

Answer 1

profit of sale :

30000×25/100=7500

total cost =30000+7500=37500

trade discount=5℅

37500×5/100=1875

37500-1875=35625

so, sales a/c credited with 35625

MOHAN A/C DR 35625

TO SALES A/C 35625

Answer 2

Given:

Cost of goods = Rs. 30000

Profit charged = 25%

Trade discount = 5%

To find:

Sales amount.

Solution :

Cost of goods = Rs. 30,000

Profit charged = 25%

PROFIT

$profit \: = \frac{25}{100} \times 30000$

$profit \: = 7500$

SELLING PRICE BEFORE DISCOUNT

$selling \: price \: before \: discount \: = cost \: price + profit$

$selling \: price \: before \: profit = 30000 + 7500$

$selling \: price \: before \: profit = 37500$

DISCOUNT

$discount \: = \frac{5}{100} \times 37500$

$discount \: = 1875$

SELLING PRICE

$selling \: price = 37500 - 1875$

$selling \: price = 35625$

The sales account would be credited by Rs. 35,625.

Mohan a/c Dr 35,625

To sales a/c Cr 35625

( Being goods sold at 25% profit and 5% sales discount)