Question

Sold goods purchased at list price of ₹ 15000 less 15% trade discount sold at a profit of 25% less 10% trade discount against check.​

Answer 1

Explanation:

Journal entry -

Bank a/c Dr. - 52594

To Sales a/c - 52594

Working notes -

Cost price of goods = 50,000 x 85/100 = 42,500.

Selling price of goods = 42,500 x 125/100 = 53,125.

Trade discount = 10/100 x 53,125 = 531

Trade discount is not shown in books.

Net selling price = 53,125 - 531 = 52,594.

Answer 2

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Journal Entries:

Bank a/c = 52594 and to Sales a/c = 52594

Working notes give below:

Cost of marchandise=42500=50000×100/85

=42500

Selling cost of merchandise =53125=42500×100/125

=53125

Discount in Trade =100/10×53125=5312.5

Trade discount isn't appeared in books.

Net selling cost = 53,125 - 5312.5 = 47812.5"