1.

Prepare Trading Account for the year ended 31st March 2020 from the following balances: 2 Amount (Rs.) Amount (Rs.) Stock as on 01.04.2019 1,00,000 Purchases 10,00,000 Wages 50,000 Carriage Inwards 10,000 Sales 15,50,000 Returns Inward 50,000 Return Outward 80,000 Freight 5,000 Closing Stock as on 31.03.2020 was valued at Rs. 2,00,000.​

Answer»

Answer:

The trading ACCOUNT is in attachment ;

GO through it..

Gross Profit = 6,15,000.

Some important Notes :

  • Purchase return will be deducted from purchased ( return Outwards ) And sales return is also deducted from total Sales ( Return Inwards ).

  • Carriage inwards is RECORDED in Trading account and carriage Outwards is recorded in Profit and LOSS account.

  • Wages and direct expenses are shown in trading account.

  • The balance of trding Account is called Gross Profit

  • Gross profit is TRANSFERRED to profit and loss account.

_____________________



Discussion

No Comment Found

Related InterviewSolutions