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Sold goods costing Rs. 40000 to Anita for cash at a profit of 25% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 ( not to be charged from customer)?
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Sold goods costing Rs. 40000 to Anita for cash at a profit of 25% on c...
Calculation of Profit on Sale



  • Cost of goods sold = Rs. 40,000

  • Profit on cost = 25%

  • Trade discount = 20%

  • Net cost = Cost of goods sold - Trade discount = Rs. 32,000

  • Profit on net cost = 25% of Rs. 32,000 = Rs. 8,000

  • Selling price = Net cost + Profit = Rs. 40,000



Calculation of Sales Tax



  • Sales tax rate = 8%

  • Sales tax amount = 8% of selling price = Rs. 3,200



Calculation of Total Amount Payable by Customer



  • Total amount payable by customer = Selling price + Sales tax + Cartage

  • Cartage = Rs. 100 (not to be charged from customer)

  • Total amount payable by customer = Rs. 40,000 + Rs. 3,200 + Rs. 100 = Rs. 43,300



Conclusion


The seller sold goods to Anita for Rs. 40,000 at a profit of 25% on cost after deducting a trade discount of 20%. The seller also charged a sales tax of 8% on the selling price and paid cartage of Rs. 100 which was not to be charged from the customer. Therefore, Anita had to pay a total amount of Rs. 43,300 for the goods.
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Similar CA Foundation Doubts

35. The Profit & Loss Account of M/s Pyare Lal Girdhari Lal disclosed a net profit of 36,000 for the year ended 31st March, 2019. After that the following errors were detected :- 1. 1,500 received from a customer in respect of a debt previously written off has been credited to his personal account. 2. Goods costing 5,000 were sent on Sales or return for 7,000. This was recorded as actual sales, though no information was received from the Customer. 3. 850 paid as rent of the office were debited to Landlord A/c and were included in the list of the Debtors. ​4. A cheque of ₹3600 received from a customer was deposited by the proprietor in his personal a/ c .5. Insurance of ₹1200 was paid for the year commencing 1 st October, 2018.6. A sale of ₹2200 has been posted through the purchase day book .7. A cheque of ₹6000 received from Vinod & Co. was dishonoured and was debited to Discount a/ c .Prepare necessary adjusting entries in journal, and prepare a profit and loss adjustment account?

The Trial Balance of ABC Ltd, as on Dec 32002 did not agree. The difference was put to a Suspense Account. During the next trading period, the following errors were discovered : (i) The total of the sales book of one page Rs. 6.531 was carried forward to the next page as Rs. 6,351 . (ii) Goods returned by a customer for Rs. 1,200 but entered in Purchases Return Book. (iii) Personal Car Expenses amounting to Rs. 250 were debited to Trade Expenses. (iv) Sales Return Book was undercast by Rs. 2,750. (v) Rs. 50 discount allowed by a supplier, was wrongly posted to debit side of Discount Account (vi) An item of purchases of Rs. 151 was entered in Purchases Book as Rs. 15 and posted to Supplier's account as Rs. 5 You are reuired to give journal entries to rectify the errors through Profit & Loss Adjustment Account in a way so as to show the current year's profit or loss correctly.​?

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Sold goods costing Rs. 40000 to Anita for cash at a profit of 25% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 ( not to be charged from customer)?
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Sold goods costing Rs. 40000 to Anita for cash at a profit of 25% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 ( not to be charged from customer)? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Sold goods costing Rs. 40000 to Anita for cash at a profit of 25% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 ( not to be charged from customer)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sold goods costing Rs. 40000 to Anita for cash at a profit of 25% on cost less 20% trade discount and charged 8% sales tax and paid cartage Rs. 100 ( not to be charged from customer)?.
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