sold goods costing 6000 to ashok & Co. issued invoice 20% above cost and and allowed 10% trade discount
Answers
Answer:
Net sale price (Invoice price) of goods = $6,480
Explanation:
Cost of goods sold = $6,000
Issue price of goods = Cost + 20%
= $6,000 + $6,000 * 20%
= $6,000 + $1,200
= $7,200
Trade discount = Invoice price * 10%
= $7,200 * 10%
= $720
Net sale price of goods (Net invoice price) = Issue price - Trade discount
= $7,200 - $720
= $6,480
Answer:
Cash A/c Dr. 6,480
To Sales A/c 6,480
Explanation:
trade discount should not be displayed as discount allowed because it has to be cleared in working note.