Multiple Choice Questions on If the goods are sold at a profit then journal entry for such transaction will be ........ for UPSC EPFO Exam Preparation

Back to Main Page

Multiple Choice Questions

If the goods are sold at a profit then journal entry for such transaction will be ........

General Accounting Principles Accounting cycles
    Download Solution PDF

    If the goods are sold at a profit then journal entry for such transaction will be

    Cash A/C Dr.

      To Sales

    Correct Answer

    Cash A/c Dr

    Profit on sale A/c Dr

      To sales

    Incorrect Answer

    Cash A/c Dr

    To Sales

    To profit on sale

    Incorrect Answer

    None of the above

    Incorrect Answer
    छोटे Courses बड़े Results
    Master Accounting cycles
    Prepare through Micro-courses
    Try Now
    Explanation:

    For goods sold we record the goods at sales value so the journal entry for goods sold at a profit would be 

    Cash A/c Dr

    To Sales

    ( Being goods sold)

    By: NIHARIKA WALIA
    ProfileResources

    Let's Discuss

    riya

    Why not 3rd option

    0 0 reply

    Ankur sharma

    Profit or loss on sale of goods is not recorded separately for each transaction, because the accounting process of journal, ledger, trail balance & financial statements is followed and at the end of the year combined profit or loss is calculated for all transactions for sale of goods.

     0 0 reply

    Amit

    respected mam, i have a doubt i.e when the goods are sold on profit, the the sales price including profit is debited to cash account or in the separate head as per 2nd options. kindly elaborate.

    0 0 reply

    NIHARIKA WALIA

    No separate head is prepared for profit on sale of goods. The total sales value and total purchase value gets accumulated due to this simple entry and total gross profit or loss is calculates in trading & profit & loss account

     0 0 reply
    Master
    Accounting cycles
    With abhipedia
    Micro Courses
    Try Now
    What our students have to say
    Review on us
    Download Abhipedia Android App

    Access to prime resources

    Downlod from playstore
    download android app download android app for free