Question

sold goods costing 6000 to m/s kalu sons at an invoice price 10% above cost less 5% trade discount​

Answer 1

Answer:

selling price = cost price + profit

sp = 6000 + 6000 x 10/100

sp= 6600

trade discount = 5 percent on sp

trade discount = 6600 x 5 /100

trade discount = 330

so selling price to m/s Kalu and sons is 6600 - 330

= 6270

journal entry will be

m/s Kalu and sons dr 6270

to sales 6270

(being goods sold on credit)

note :- trade discount is not shown in the books of accounts