Question

sold goods costing 40000 to anil for cash at a profit of 25% on less 20% trade discount and paid cartage rs 100 which is not charged from the costomer

pass the journal entry

Answer 1

The answer is in the attachment.

Answer 2

Answer:

For sale:-

Cash A/C Dr. 40,000

To sales A/C 40,000

( Being sold goods for cash )

For cartage :-

Cartage A/C Dr. 100

To cash A/C 100

Explanation:

cost of goods = 40,000

cost price including profit = 25% of 40,000 + 40,000

= 50,000

Less 20 % Trade discount = 50,000 - 10,000

= 40,000