An office almirah costing ₹15000 sold for ₹13000.selling expences incurred ₹500

Journal Entry for the Sale of Printer

To record the sale of a printer costing Rs 12,000 and sold for Rs 15,000, along with selling expenses amounting to Rs 600, the following journal entry will be made:

1. Debit the Cash/Bank Account:
Cash/Bank - Dr. Rs 15,000

2. Debit the Selling Expenses Account:
Selling Expenses - Dr. Rs 600

3. Credit the Sales Account:
Sales - Cr. Rs 15,000

4. Credit the Cost of Goods Sold Account:
Cost of Goods Sold - Cr. Rs 12,000

5. Credit the Profit on Sale Account:
Profit on Sale - Cr. Rs 3,000

The journal entry can be explained as follows:

1. Debit the Cash/Bank Account:
The debit to the Cash/Bank account represents an increase in the cash received from the sale of the printer. The amount debited is Rs 15,000, which is the selling price.

2. Debit the Selling Expenses Account:
The debit to the Selling Expenses account represents the cost incurred in selling the printer. Here, the selling expenses amount to Rs 600.

3. Credit the Sales Account:
The credit to the Sales account represents the revenue generated from the sale of the printer. The amount credited is Rs 15,000, which is the selling price.

4. Credit the Cost of Goods Sold Account:
The credit to the Cost of Goods Sold (COGS) account represents the cost of the printer sold. The amount credited is Rs 12,000, which is the cost price of the printer.

5. Credit the Profit on Sale Account:
The credit to the Profit on Sale account represents the profit earned from the sale of the printer. The amount credited is Rs 3,000, which is the difference between the selling price and the cost price.

Summary:
The journal entry records the sale of a printer costing Rs 12,000 for Rs 15,000, along with selling expenses amounting to Rs 600. The cash received from the sale is debited to the Cash/Bank account, while the revenue from the sale is credited to the Sales account. The cost of goods sold is credited to the Cost of Goods Sold account, and the profit earned is credited to the Profit on Sale account. The Selling Expenses account is debited to record the expenses incurred in selling the printer.