Question

what is the journal entry of sold goods costing rupees 8000 for 9000 to sohan​

Answer 1

• rohan (debtor) dr to sales a/c

Answer 2

In the books of Journal Entry

Particulars                                             Amount                Amount

Sales (Sohan) A/c                                ……….Dr.                      9000

To Cost of goods sold A/c                  …………Cr                     8000

To P/L A/c                                            ...……..Cr                       1000

(being goods sold at INR 9000 in which profit of INR 1000 transferred into Profit and loss account]

Workings:  

Profit = Selling price – Cost of goods cost  

= 9000 – 8000

= 1000

EXPLANATION:

• A journal entry is the act of making or keeping records of any transactions either non-economic or economic. Transactions are typically listed in an accounting journal which exhibit a company's credit and debit balances. Journal entries can comprise several recordings, each of which is either a credit or a debit.
• Journal entries can record recurring items or unique items such as bond amortization or depreciation. A properly recorded journal entry comprises amount(s), the correct date which will be debited, amount that is credited, transaction description, and unique reference number.