Question

Goods costing 48,000 sold at a profit of 25% on sales to Ram, ¾th received in cash. Cash Rs-------------will be increased in accounting equation.

Answer 1

Answer:

Explanation:

goods are sold of at 60,000 out of which 3/4 is received in cash so amt. is 45,000.

so, cash will increase - 45,000

debtor will increase -15,000

stock will reduce - 48,000

capital will increase -12,000 bcoz of profit

Answer 2

GIVEN :  goods cost = 48,000 ; profit percentage = 25%

TO FIND : By which amount cash will be increased

SOLUTION :

Goods Cost = 48,000

Selling Price = 60,000

Profit on sales = 48,000 × $\frac{25}{100}$

                          = 12,000

Selling price = 48000 + 12000

                    = 60, 000

Cash given is $\frac{3}{4}$.

So, cash paid at the time of purchase = 60,000 × $\frac{3}{4}$

                                                              = 45,000

Credit Amount = 15,000

Journal Entry will be -

Cash A/C DR 45,000

Ram A/C DR 15,000

               To Sales A/C 60,000

( Being goods sold on cash as well as on credit )

Cash will be increased by rupees 45,000 .