Question

Goods costing ₹50000 sold for ₹70000
Journal entry??

Answer 1

Answer:

cash A/c ....Dr. 70000

To sales a/c. 50000

To p&l a/c. 20000

(being goods sold at profit)

Explanation:

because as per modern approch sales will be deducted from assest ac. causing the sales to be credited and p&l to be added in capital being credited while cash is recieved will be debited)

Answer 2

Answer:

Cash/ Bank Acc (Debit) - Rs 70,000

             To Sales Acc-(Credit)- Rs. 50,000

             To PnL Acc- (Credit) - Rs 20,000

(Being Goods costing ₹50000 sold for ₹70000)

Explanation:

Journal Entry:

• A journal entry is an act of recording any transaction, whether one is commercial or not.
• An accounting diary that displays the debit and credit balances of a corporation lists transactions.
• Multiple recordings, each of which is either a debit or a credit, may be included in the journal entry.

The cost of goods sold (COGS)

• It is the price a distributor, producer, or retailer pays for a product.

• A company's gross profit is calculated as sales revenue less cost of products sold.
• In accounting, the cost of goods sold is considered an expense and may be noted on a financial report known as an income statement.
• Since, according to the modern approach, sales will be subtracted from assets ac, leading sales to be credited and profit and loss to be added in capital being credited while cash received will be debited)

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