Question

Goods Sold to Raja Rs. 50,000 for @10% Trade discount then Debit to

a. Raja A/c 50,000
b. Sales A/c 40,000
c. Raja A/c 40,000
d. None of above​

Answer 1

Answer:

(d) None of above

Explanation:

Given that cost of goods is 50,000 and are sold to Raja @10% trade discount.

Price of good after deducting trade discount :

New price = 50,000 - 10% of 50,000

New price = 50,000 - 5,000

New price = ₹45,000

Journal entry for the sales of good will be,

Raja's A/c . . . Dr - ₹45,000

‎ ‎ ‎To sales A/c - ₹45,000

Here we are debiting Raja will ₹45,000.

Hence (d) none of these is the correct option.