Question

If goods costing 950 are sold on credit on 1000 .How it affect capital and assets​

Answer 1

Answer:

If the goods are sold as ₹1000 and cost as ₹950 then you have ₹50 as profit.

Since you have made the profit of rupees 50 than ₹50 will be credited to Capital Account.

The Journal Entry for this transaction is :-)

Debtor/Manish A/c Dr. 1000

To Sales 1000

(Being goods sold to to Debtor/Manish on credit.)

The Affect on Accounting Equation will be ;-)

Stock + Debtor = Capital

950 + 0 = 950

-950 + 1000 = +50

0 + 1000 = 1000

Hope you liked!♥️

Please Mark as Brainliest!

@manishthakur100