Question

sold goods costing Rs 60,000 to Anil for cash at a profit 25%on cost less 10%Trade discount (How many accounts in this question)​

Answer 1

Answer:

their are two accounts in this question.

Explanation:

Sales and Cash account .

The reason is that goods are sold to anil for cash and at a profit of 25% and less 10% trade discount . Then the journal entry will be

Cash A/C Dr. 67500

To Sales A/C 67500

( being goods worth 60000 sold at a profit of 25% less 10% trade discount)

working notes:-

Cost of goods = 60000

Sold at a profit of 25%

then goods sold at = 60000 × 25% = 75000

100

10% trade discount on list price = 75000 × 10%

100%

trade discount amount = 7500

so, 75000 -- 7500 = 67500

{ It should be remembered that trade discount will not show in the journal entry }

Thanks you❤❤❤❤

By = Himanshu Pandey.

Class = 11th ( Commerce )