Question

sold goods costing 10000 to mohan for cash 14000​

Answer 1

Answer:

cash AC Dr 14000

sale AC cr 10000

to profit AC cr 4000

Answer 2

Correct Answer:

Mohan A/c    Dr.

     To Cash A/c

     To Profit & Loss A/c

Explanation:

• Mohan will be debited because goods are sold to Mohan, he is the receiver of the goods.
• The rules of debit and credit are:
• Debit what comes in, Credit what goes out.
• Debit all loses and expenses, Credit all incomes and gains.
• Debit the receiver, Credit the giver.

• So, Mohan is being sold goods and sales journal entry is written as cash or person's name account debit and sales account credit.
• Mohan to sales if there was no cash, but since sales is made for cash, entry will be Mohan to cash.
• And since there is a difference in the cost of goods being sold so the extra margin will be credit to the Profit & Loss Account.
• Since, there is a 4000 positive difference, it will be a profit for the goods sold.

Hence, the final answer will be:

Mohan A/c    Dr.      14000

        To Cash A/c        10000

        To P/L A/c            4000

(being goods sold for cash)

#SPJ2