Question

sales value of goods rs 40,000 destroyed by fire profit include in sales value at the rate of 25% on cost​

Answer 1

Sale= cost + profit
If profit is 25% on cost
Then
Profit = 40000 *25\125= 8000
Cost price = sAle -profit
= 40000-8000
32000

Journal entries
Sales ac 40000 dr
Profit and loss ac cr 8000
Stock Ac cr 32000