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Prepare a trading account for the year ended 31st March 2020 from the following balance as on 31st March 2021 Stock (1st April,2020). 60,000. |Sales return 40,000 Wages. 8,000 |. Return outward. 9,000 Sales. 3,40,000|. Frieght. 1,000 Purchases. 2,00,000 |. Octroi duty. 2,500?
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Prepare a trading account for the year ended 31st March 2020 from the ...
Trading Account for the year ended 31st March 2020
The trading account is a statement that shows the gross profit or loss of a business during a particular accounting period. It is the first part of the income statement and is prepared to calculate the cost of goods sold and the gross profit of the business. The trading account is prepared using the following formula:
Opening Stock + Purchases + Direct Expenses - Closing Stock = Cost of Goods Sold
Sales - Cost of Goods Sold = Gross Profit / (Loss)
Opening Stock: 60,000
Purchases: 2,00,000
Direct Expenses:
Wages: 8,000
Frieght: 1,000
Octroi duty: 2,500
Total Direct Expenses: 11,500
Less: Return Outward: 9,000
Net Direct Expenses: 2,500
Cost of Goods Sold:
Opening Stock: 60,000
Add: Purchases: 2,00,000
Add: Direct Expenses: 2,500
Less: Closing Stock: (To be provided)
Cost of Goods Sold: (To be calculated)
Sales: 3,40,000
Less: Sales Return: 40,000
Net Sales: 3,00,000
Gross Profit: (To be calculated)
Therefore, the trading account for the year ended 31st March 2020 is as follows:
Trading Account for the year ended 31st March 2020
Particulars Amount (Rs.) Amount (Rs.)
Opening Stock 60,000
Add: Purchases 2,00,000
Add: Direct Expenses 2,500
Less: Closing Stock (To be provided)
Cost of Goods Sold (To be calculated)
Gross Profit (To be calculated)
Total 2,62,500 3,00,000
Note: The closing stock figure is to be provided to calculate the cost of goods sold. The gross profit figure is to be calculated by deducting the cost of goods sold from the net sales.
The trading account is a statement that shows the gross profit or loss of a business during a particular accounting period. It is the first part of the income statement and is prepared to calculate the cost of goods sold and the gross profit of the business. The trading account is prepared using the following formula:
Opening Stock + Purchases + Direct Expenses - Closing Stock = Cost of Goods Sold
Sales - Cost of Goods Sold = Gross Profit / (Loss)
Opening Stock: 60,000
Purchases: 2,00,000
Direct Expenses:
Wages: 8,000
Frieght: 1,000
Octroi duty: 2,500
Total Direct Expenses: 11,500
Less: Return Outward: 9,000
Net Direct Expenses: 2,500
Cost of Goods Sold:
Opening Stock: 60,000
Add: Purchases: 2,00,000
Add: Direct Expenses: 2,500
Less: Closing Stock: (To be provided)
Cost of Goods Sold: (To be calculated)
Sales: 3,40,000
Less: Sales Return: 40,000
Net Sales: 3,00,000
Gross Profit: (To be calculated)
Therefore, the trading account for the year ended 31st March 2020 is as follows:
Trading Account for the year ended 31st March 2020
Particulars Amount (Rs.) Amount (Rs.)
Opening Stock 60,000
Add: Purchases 2,00,000
Add: Direct Expenses 2,500
Less: Closing Stock (To be provided)
Cost of Goods Sold (To be calculated)
Gross Profit (To be calculated)
Total 2,62,500 3,00,000
Note: The closing stock figure is to be provided to calculate the cost of goods sold. The gross profit figure is to be calculated by deducting the cost of goods sold from the net sales.
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Prepare a trading account for the year ended 31st March 2020 from the following balance as on 31st March 2021 Stock (1st April,2020). 60,000. |Sales return 40,000 Wages. 8,000 |. Return outward. 9,000 Sales. 3,40,000|. Frieght. 1,000 Purchases. 2,00,000 |. Octroi duty. 2,500?
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