Question

Goods sold to Y on credit costing ₹32000 at A profit of 20% on cost
Journal entry of this

Answer 1

Hello..

Given that:-

Cost of goods =32000

+ profit (@20% on cost)

so, 20% of 32000 =6400

Selling price will be =32000+6400

=38400

_______________________

Journal Entry..

Y 's a/c dr.38400

____to sales a/c 38400

( being sold goods on credit)

Answer 2

Selling price of goods will be..

Cost of goods + profit

since..32000+(20% ×32000)

= 32000 + 6400

=38400

so journal entry..

Y's a/c dr.38400

to sales a/c 38400

..hope this will help..