Question

Sold goods costing 40000 to anil for cash at a profit of 25% on cost less 20% trade discount and paid cartage 100 ,which is not to be charged from customer

Answer 1

The amount debited would be 43,200 rupees. This is (Dr). The amount which will be credited in the sales account is 40,000 rupees.

The amount which will go into the sales tax account will be 3,200 rupees. The Cartage account will be debited of 100 rupees and it will be credited to the cash account of 100 rupees.

Answer 2

Answer:

Explanation:

Cost Price of goods=40000

Profit of 25%=10000

New price=50000

Trade discount=50000*20%=10000

Thus final price=40000

There is no information in the question about any kind of tax,thus entry will be

Cash A/c    Dr    40000

   To Sales A/c             40000

Cartage A/c   Dr     100

    To Cash A/c           100