What is the journal entry of goods costing rupees 10000 issued to sarthak at cost 20% less 10% trade discount - Accountancy - Recording of Transactions - I

Question

What is the journal entry of goods costing rupees 10000 issued to
sarthak at cost 20% less 10% trade discount

Neha Chopra · Accepted Answer

Dear Student

Journal

Date
Particulars

Debit
Credit

Sarthak
A/c
Dr
10,800

To
Sales

10,800

(Being goods sold at
10% trade discount)

Calculation of Sales
value to be recorded in books

Total
Cost

10,000

Add: 20% profit on
cost

2,000

Sales
price

12,000

Less : Trade Discount
@ 10%

1,200

Sales value to be
recorded

10,800

Regards

Journal
Date	Particulars		Debit	Credit

	Sarthak A/c	Dr.	10,800
	To Sales			10,800
	(Being goods sold at 10% trade discount)

Calculation of Sales value to be recorded in books
Total Cost		10,000
Add: 20% profit on cost		2,000
Sales price		12,000
Less : Trade Discount @ 10%		1,200
Sales value to be recorded		10,800