Question

Make journal entry: sold goods of cost rs.20000 at a profit of 20%on sales and less 20% trade discount

Answer 1

Answer:

cash A/c. Dr. 21000

To sales A/c. 21000

sales A/c. Dr. 21000

To purchases A/c. 20000

To gain on sale A/c. 1000

Explanation:

cost price=20000

-trade discount=4000

+ profit. =5000

selling price=21000