Question

sold goods costing rs.20,000 to sunil at a profit of 20% on sale ,less 20% trade discount and paid cartage rs.150

Answer 1

List Price  = 20,000 + 20%(20,000) = Rs.24,000 Trade Discount @ 20% = 24,000- 20%(24,000) = Rs.19,200 Journal Entry : Cash A/C Dr.   Rs. 19,200     To Sales A/C.  Rs.19,200 (Being goods sold to Sunil) For Cartage Paid: Cartage A/C.   Dr. Rs.150     To Cash A/C.  Rs.150 (Being cartage paid)