Question

sold goods costing 600 to mohan issued at 10% above cost less 5% trade discount ....journal entry

Answer 1

List Price = Cost Price + 10%(Cost price)

List price = Rs.600+ 10%(600) = Rs.600+ Rs.60 = Rs.660

Trade Discount = 5%(Rs.660) = Rs.33

Invoice price = Rs.660-Rs.33= Rs.627

Journal Entry

Mohan A/C. Dr. Rs 627

To Sales A/C. Rs.627

(Being goods sold to Mohan)