Ques 22.please help in find the answer (immediately)
Answers
Entry 1 - Goods purchased and capitalization of expenses
Purchases A/C ------- Dr. 14,000
To Ravi's A/C 14,000
(Being goods purchased from Ravi and Carriage Rs. 2000 paid)
Entry 2 - Sale of Goods with 20% Profit on Cost
Calculation of Profit is as under:
Net Amount of Goods Purchased - 12,000
12000 + ? = 100 + 20
12000 x 20 / 100 = ?
240000 / 100 = 2400
20% of 12,000 = 2400 ; Therefore, Selling Price = 12,000 + 2,400 = 14,400
Entry is as under:
Cash A/C -------- Dr. 14,400
To Sales A/C 14,400
(Being goods sold on cash basis)
Entry 3 - O/S Salary
Salary A/C ---------- Dr. 5000
To O/S Salary A/C 5000
(Being O/S Salary recorded in the books)
Entry 4 - Goods distributed as free samples
Advertisement A/C ---- Dr. 3000
To Purchases A/C 3000
(Being goods distributed as free samples)
The above are the journal entries for the transactions as mentioned. It is your duty to prepare ledger accounts as mentioned in the question and do the needful, if you need help with it - let me know below. Hope this helps you, if it does - kindly mark it as brainliest as it would mean a direct source of motivation to me.