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Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000?
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Trading account from the following balance as on 31st March 2021 Stock...
Trading Account for the year ended 31st March 2021
Opening Stock - 32,000
Purchases - 8,50,000
Carriage on Purchase - 12,000
Duty and Clearing Charges - 6,000
Total Cost of Sales - 8,00,000 (8,50,000 + 12,000 + 6,000 - 50,000)
Sales - 9,00,000
Less: Return Inward - 50,000
Net Sales - 8,50,000
Closing Stock - 40,000
Calculation of Gross Profit
Gross Profit = Net Sales - Cost of Sales
Gross Profit = 8,50,000 - 8,00,000
Gross Profit = 50,000
Explanation:
- The trading account is a part of the final accounts of a trading concern, which shows the gross profit or gross loss made by the business during a particular period.
- The opening stock is the value of goods held by the business at the beginning of the accounting period.
- Purchases include the cost of goods purchased during the year.
- Carriage on purchase and duty and clearing charges are the expenses incurred while purchasing goods.
- Return inward is the value of goods returned by the customers during the year.
- The closing stock is the value of goods held by the business at the end of the accounting period.
- Sales represent the value of goods sold during the year.
- The net sales are calculated by deducting the return inward from the sales.
- The cost of sales is calculated by adding the opening stock, purchases, carriage on purchase, and duty and clearing charges and deducting the closing stock from it.
- The gross profit is calculated by deducting the cost of sales from the net sales.
Opening Stock - 32,000
Purchases - 8,50,000
Carriage on Purchase - 12,000
Duty and Clearing Charges - 6,000
Total Cost of Sales - 8,00,000 (8,50,000 + 12,000 + 6,000 - 50,000)
Sales - 9,00,000
Less: Return Inward - 50,000
Net Sales - 8,50,000
Closing Stock - 40,000
Calculation of Gross Profit
Gross Profit = Net Sales - Cost of Sales
Gross Profit = 8,50,000 - 8,00,000
Gross Profit = 50,000
Explanation:
- The trading account is a part of the final accounts of a trading concern, which shows the gross profit or gross loss made by the business during a particular period.
- The opening stock is the value of goods held by the business at the beginning of the accounting period.
- Purchases include the cost of goods purchased during the year.
- Carriage on purchase and duty and clearing charges are the expenses incurred while purchasing goods.
- Return inward is the value of goods returned by the customers during the year.
- The closing stock is the value of goods held by the business at the end of the accounting period.
- Sales represent the value of goods sold during the year.
- The net sales are calculated by deducting the return inward from the sales.
- The cost of sales is calculated by adding the opening stock, purchases, carriage on purchase, and duty and clearing charges and deducting the closing stock from it.
- The gross profit is calculated by deducting the cost of sales from the net sales.
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Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000?
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Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000?.
Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Trading account from the following balance as on 31st March 2021 Stock (1.4.2020). 32,000 Purchase. 8,50,000 Sales 9,00,000 Return inward 50,000 Closing stock (31.3.2021). 40,000 Carriage on purchase. 12,000 Duty and clearing charges 6,000?.
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