Question

Purchased goods from Anand * 60,000 and paid central sales tax @ 4%. (1) Sold goods costing 50,000 at a profit of 25% on cost less 10% trade discount.


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Answer 1

Answer:

1) Transaction : Purchased goods from Anand * 60,000 and paid central sales tax @ 4%

# The given transaction is a credit transaction.

Journal Entry:

        Purchases A/c ------------------Dr            60000

        Sales Tax A/c--------------------Dr               2400

                    To Anand A/c                                            62400

       ( Being goods purchased from anand and sales tax paid)

2) Transaction :  Sold goods costing 50,000 at a profit of 25% on cost less 10% trade discount

# The given transaction is a cash transaction.

Journal Entry:

        Cash  A/c ------------------------Dr            56250

                    To Sales A/c                                           56250

       ( Being Sold goods at a profit of 25% on cost less 10% trade discount)

Step-by-step explanation:

In Transaction trade discount is calculated on cost and is not considered in the books of account. Therefore, Amount is Calculated

(50000×90%)*125% = Rs.56250

Answer 2

Purchased goods from Anand * 60,000 and paid central sales tax @ 4%.

Answer:62500

(1) Sold goods costing 50,000 at a profit of 25% on cost less 10% trade discount.

Answer:56250