Question

sold goods to sovanlal costing ₹30000 and issued invoice at 20% above cost and allowed him a trade discount of 10%.. what is the journal entry?​

Answer 1

Answer:

List Price = Cost Price + 10%(Cost price)

List price = Rs.600+ 10%(600) = Rs.600+ Rs.60 = Rs.660

Trade Discount = 5%(Rs.660) = Rs.33

Invoice price = Rs.660-Rs.33= Rs.627

Journal Entry

Mohan A/C. Dr. Rs 627

To Sales A/C. Rs.627