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Good of the sp rs 4000 are lost by fire and insurance co. Admitted 60% of claim. It is our practice to charge 20% on selling price.....entry for this??
Answers (8)
Divy Degda
Cash/insurance com. AC 1920 Loss by fire a/c. 1280 To purchase.a/c. 3200 Goods costing - 4000 -20% - 3200
Charging 20% means subtracting ??
Samarth Kshatriya
20% on selling price means I don't understand it please anyone explain it
Cost + Profit = Selling Price Ex:- cost = 100 + Profit = 25 Selling Price = 125 Profit on cost = 25/100 or 1/4 Profit on sale = 25/125 or 1/5
CA Suraj Lakhotia Admin
(Updated)
Now here since SP is given and % profit on SP is given - profit is directly 20% on 4000 = 800
In other cases One simple trick to remember is to assume the value on which % is calculated as 100. So if 20% profit on S.P Assume SP = 100, Profit = 20 and Cost = 80. For. e.g if profit is 20% on cost, Cost = 100, Profit = 20, SP = 120 SP Cost 120. 100 4000. ??? cross multiply - 4000 x 100 / 120
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