Question

Journal entry for
Supplied goods costing rs600 to mohan and issued invoice at 10%above costand allowed him 5% trade discount

Answer 1

Answer:

Mohan A/c     Dr   627

       To salesA/c                627

(being sale made to mohan )

Explanation:

Cost = 600

sales = 600 + (600*10%)

          =600+60

           =660

trade discount = 660 *5%

                        =33

net sales =sales - trade discount

                =660- 33

               = 627