ABC Limited (company) has listed its products on amazon. It operates at a gross margin of...
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ABC Limited (company) has listed its products on amazon. It operates at a gross margin of 67%. It has received an order for Rs. 995/-. (including shipping charges of Rs. 95). The goods sold are covered under 12% GST. Amazon charges a 14.35% commission on order value & Rs. 125 per order as shipping charges. GST @ 18% is recovered extra by Amazon. TDS @ 1% under section 194-0 of the Income Tax Act 1961 is applicable. TCS @1% under Section 52 of the CGST Act. 2017 is also applicable. After making all the necessary deductions and collections final settlement is remitted to companies Bank account. You are required to Pass Journal Entries in the books of the company to record all of the above transactions. Also, calculate the final amount settled to the Bank along with the profit margin of the company on this sale transaction. ABC Limited (company) has listed its products on amazon. It operates at a gross margin of 67%. It has received an order for Rs. 995/-. (including shipping charges of Rs. 95). The goods sold are covered under 12% GST. Amazon charges a 14.35% commission on order value & Rs. 125 per order as shipping charges. GST @ 18% is recovered extra by Amazon. TDS @ 1% under section 194-0 of the Income Tax Act 1961 is applicable. TCS @1% under Section 52 of the CGST Act. 2017 is also applicable. After making all the necessary deductions and collections final settlement is remitted to companies Bank account. You are required to Pass Journal Entries in the books of the company to record all of the above transactions. Also, calculate the final amount settled to the Bank along with the profit margin of the company on this sale transaction.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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