Question

Goods sold costing 60000 to m/s kalu and some at an invoice price 10% above cost less 5% trade discount

Answer 1

plz complete your questions first

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

sales A/c - Nominal A/c , its a income to the company therefore its credited

M/s Kalu A/c - personal A/c , where the debtor is receiver of goods therefore its debited .

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Calculation of sales

cost =60000

sales =60000+(60000*10%)

=60000+6000

=66000

net sales = sales - trade discount

= 66000-(66000*5%)

=66000-3300

=62700

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Journal entry

M/s Kalu A/c 62700

To Sales A/c 62700

(Being credit sales made )

note : trade discount should be deducted from sales amount .

no journal entry passed for trade discount

Hope its useful..!!