Question

One third of above goods sold at a profit of 10% on cost and half of the payment is received in cash

Answer 1

Answer:

Explanation:

Given "Goods costing rs 24,000 sold at a profit of 100/3 % . Half the payment received in cash."

100/3% (Typo error) ... 1/3 (after Correction)

Cost Price= 24000

Profit = 24000 × 1/3 = 8000

Selling Price= 24000 + 8000 =32000

Of which half payment is recieved in cash.... 32000/2 = 16000

Remaining 16000 on credit...

So this transaction affects 3 accounts ... Sales a/c ( being Goods sold) , Cash a/c ( half of the payment is recieved in cash) , Debtor a/c(remaining half on credit)..

Sales a/c is a nominal account..(All incomes gains losses expenses come under it... Sales is an income)

Cash a/c is a real account...(All the assets and Liabilities come under it.... Cash is an asset)

Debtor is a Personal account..(As the Name suggests)

The golden rules of accounting are...

Personal Account - Debit the receiver , credit the giver

Nominal Account - Debit All expenses and losses, credit All incomes and gains

Real Account - Debit what comes in , credit what goes out

In contention with the above rules........

Cash should be debited.. Because its coming in

Debtor Being the receiver should be debited..

Sales being an income should be credited...

So the Journal Entry will be....

Cash a/c Dr 16000

Debtor a/c Dr 16000

To Sales a/c. 32000

(Being Goods Sold)

Read more on Brainly.in - https://brainly.in/question/4854179#readmore