sold goods for cash costing Rs 40,000 at a profit of 20% nd on credit costing Rs 72000 at a profit of 25%
cash = + 48000
goods = - 40000
goods sold on credit...
debtors = 90000
goods = - 72000
any explainations want ??? then tell ...
- -5
For Cash:
Cost (Stock decreased) = Rs.40,000
Profit = 20% on Cost = 20% * Rs.40,000 = Rs.8,000
Sales (Cash received) = Rs.40,000+Rs.8,000 = Rs.48,000
.
For Credit:
Cost (Stock decreased) = Rs.72,000
Profit = 25% on Cost = 20% * Rs.72,000 = Rs.18,000
Sales (Debtors-receivable) = Rs.72,000+Rs.18,000 = Rs.90,000
.
.
RESULTS:
1. Total Stock decreased (Credited to Stock A/c-COST) = Rs.40,000+Rs.72,000 = Rs.1,12,000
2. Cah increased (Debited to Cash A/c) = Rs.48,000
3. Debtors increased (Debited to Debtors' A/c) = Rs.90,000
4. Total Profit made (Credited to Capital A/c) = Rs.8,000+Rs.18,000 = Rs.26,000
.
.
ACCOUNTING EQUATION
Assets:
1. Stock decreased = (Rs.1,12,000)
2. Cash increased = Rs.48,000
3. Debtors increased = Rs.90,000
Net Effect = Rs.26,000
.
Capital:
1. Capital increased (by Profit figure) = Rs.26,000
.
Liabilities = NIL
.
.
So, Rs.26,000 (Assets) = Rs.26,000 (Capital) + Nil (Liabilities)
=> Rs.26,000 = Rs.26,000
- 3
For Cash:
Cost (Stock decreased) = Rs.40,000
Profit = 20% on Cost = 20% * Rs.40,000 = Rs.8,000
Sales (Cash received) = Rs.40,000+Rs.8,000 = Rs.48,000
.
For Credit:
Cost (Stock decreased) = Rs.72,000
Profit = 25% on Cost = 20% * Rs.72,000 = Rs.18,000
Sales (Debtors-receivable) = Rs.72,000+Rs.18,000 = Rs.90,000
.
.
RESULTS:
1. Total Stock decreased (Credited to Stock A/c-COST) = Rs.40,000+Rs.72,000 = Rs.1,12,000
2. Cah increased (Debited to Cash A/c) = Rs.48,000
3. Debtors increased (Debited to Debtors' A/c) = Rs.90,000
4. Total Profit made (Credited to Capital A/c) = Rs.8,000+Rs.18,000 = Rs.26,000
.
.
ACCOUNTING EQUATION
Assets:
1. Stock decreased = (Rs.1,12,000)
2. Cash increased = Rs.48,000
3. Debtors increased = Rs.90,000
Net Effect = Rs.26,000
.
Capital:
1. Capital increased (by Profit figure) = Rs.26,000
.
Liabilities = NIL
.
.
So, Rs.26,000 (Assets) = Rs.26,000 (Capital) + Nil (Liabilities)
=> Rs.26,000 = Rs.26,000
- 8
40000?20/100=8000
That means the goods are sold for Rs. 48000 as 40000+8000
Cash A/c (+) 48000 ; Capital A/c (+) 8000 (profit)
2. Sold goods costing 72000 with a profit of 25 % on credit, that is,
72000?25/100=18000
That means goods are sold for 90000
As 72000+18000
Since, here it is given that the goods are sold on credit so we will make Debtor's A/c on the asset side and (+) 90000 in it also we will add 18000 in the capital A/c because we have gained 25% profit which is rs.18000
- -1