Question

Sohan is cloth retailer & he purchased silk cloth @500each he fixes a price which is 20 %above cost he gives a trade discount of 5 % cash sales.sales not given. How much profit he earns per shirt&to which account will be credited?

Answer 1

Explanation:

He earns a profit of 100 rs (500×20%=100 rs) total (500 + 100=600[net])

and Sales A/C and Profit A/C should be credited