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Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation?
Most Upvoted Answer
Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment...
Accounting Equation:
Assets = Liabilities + Equity
Explanation:
Step 1: Calculation of Selling Price
Profit percentage = 33 1/3%
Profit on cost = (Profit percentage / 100) x Cost price
Profit on cost = (33 1/3 / 100) x 24000
Profit on cost = 8000
Selling price = Cost price + Profit on cost
Selling price = 24000 + 8000
Selling price = 32000
Step 2: Calculation of Cash Received
3/4 payment received in cash
Cash received = 3/4 x Selling price
Cash received = 3/4 x 32000
Cash received = 24000
Step 3: Calculation of Credit Sales
Credit sales = Selling price - Cash received
Credit sales = 32000 - 24000
Credit sales = 8000
Step 4: Accounting Equation
Assets = Liabilities + Equity
Cash + Debtors = Creditors + Capital
Cash + 24000 = 0 + (24000 + 8000)
Cash + 24000 = 0 + 32000
Cash = 8000
Debtors = Credit sales
Debtors = 8000
Creditors = 0
Capital = Equity
Capital = 24000 + 8000
Capital = 32000
Conclusion:
The accounting equation for this transaction is:
Assets = Liabilities + Equity
Cash + Debtors = Creditors + Capital
8000 + 8000 = 0 + 32000
The cash received is recorded as an asset, debtors are recorded as an asset as credit sales are yet to be received, and capital is increased by the profit earned. Creditors are not involved as all payments are received in cash or credit sales.
Assets = Liabilities + Equity
Explanation:
Step 1: Calculation of Selling Price
Profit percentage = 33 1/3%
Profit on cost = (Profit percentage / 100) x Cost price
Profit on cost = (33 1/3 / 100) x 24000
Profit on cost = 8000
Selling price = Cost price + Profit on cost
Selling price = 24000 + 8000
Selling price = 32000
Step 2: Calculation of Cash Received
3/4 payment received in cash
Cash received = 3/4 x Selling price
Cash received = 3/4 x 32000
Cash received = 24000
Step 3: Calculation of Credit Sales
Credit sales = Selling price - Cash received
Credit sales = 32000 - 24000
Credit sales = 8000
Step 4: Accounting Equation
Assets = Liabilities + Equity
Cash + Debtors = Creditors + Capital
Cash + 24000 = 0 + (24000 + 8000)
Cash + 24000 = 0 + 32000
Cash = 8000
Debtors = Credit sales
Debtors = 8000
Creditors = 0
Capital = Equity
Capital = 24000 + 8000
Capital = 32000
Conclusion:
The accounting equation for this transaction is:
Assets = Liabilities + Equity
Cash + Debtors = Creditors + Capital
8000 + 8000 = 0 + 32000
The cash received is recorded as an asset, debtors are recorded as an asset as credit sales are yet to be received, and capital is increased by the profit earned. Creditors are not involved as all payments are received in cash or credit sales.
Community Answer
Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment...
Sales - asset ↓ —cr. (24,000)
Cash - asset ↑ — dr. (32,000)
profit - Income↑ — cr. (8,000)
Cash - asset ↑ — dr. (32,000)
profit - Income↑ — cr. (8,000)
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Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation?
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Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation?.
Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Goods costing 24000 sold at a profit of 33 1/3 percent and 3/4 payment received in cash write its accounting equation?.
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