Question

(xi) Sold goods purchased at list price of 50,000 sold at a profit of 25% less 10% trade
in this case where will I add the profit amount in the journal
pls don't give wrong answers​

Answer 1

Answer:

see

Explanation:

Journal Entries:

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

Working notes give below:

Cost of merchandise =\quad 50000\quad \times \quad \frac { 85 }{ 100 } \quad =\quad 42500=50000×10085=42500

Selling cost of merchandise =\quad 42500\quad \times \quad \frac { 125 }{ 100 } \quad =\quad 53125=42500×100125=53125

Discount in Trade =\quad \frac { 10 }{ 100 } \quad \times \quad 53125\quad =\quad 5312.5=10010×53125=5312.5

Trade discount isn't appeared in books.  

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