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9 Goods with the selling price Rs. 1,250 were distributed as frec samples. We sell goods cost plus 25% on cost. Journal entry |
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Answer» Free SAMPLES account dr. 1000 To PURCHASE account. 1000we take PROFIT 25%on costlet cost be 100profit. 25(100×25%)sale =. 125 profit on sale is 25/125sale is 1250so profit is 1250×25/125=250cost is = 1250-250=1000 When we distributed goods as free samples then cost price is CONSIDER not sale price |
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