Question

Goods costing rs 24000 sold at a profit of 33 1/3 % half of the payment recieved in cash...what will the entry?? Plz tell n explain

Answer 1

The entry will be


Cash A/c. Dr. 12000
Debtors A/c.(here name of purchaser
will come) Dr. 12000


To Sales A/c. 24000

Answer 2

you should start by calculating the profit made which is 8000 adding this to the buying price gives us 32000, the payment received was half which mean it was 16000, in this case in our entry we will debit and credit 16000 in the sales account, because the payment of goods was half, and on the purchases account we will enter 16000 also in both the credit and the debit side.