Prepare training account of Mohan cloth merchant for the year 2014 fro...
Training Account of Mohan Cloth Merchant for the Year 2014
Opening Stock
- Opening stock: Rs 20,000
Purchases
- Cash purchases: Rs 30,000
- Credit purchases: Rs 20,000
- Purchases return: Rs 2,500
- Total purchases: Rs 47,500
Sales
- Cash sales: Rs 45,000
- Credit sales: Rs 25,000
- Sales return: Rs 1,600
- Total sales: Rs 68,400
Expenses
- Octroi: Rs 200
- Loss of goods by fire: Rs 3,000
- Goods withdrawn for private use: Rs 1,500
- Wages: Rs 600
- Commission on purchases: Rs 300
- Goods given in charity: Rs 250
- Carriage inward: Rs 1,450
Other Transactions
- Goods given free as a sample: Rs 250
- Goods sent on consignment at cost: Rs 2,500
Closing Stock
- Closing stock: Rs 4,500
Calculations
- Total purchases (including returns): Rs 47,500 - Rs 2,500 = Rs 45,000
- Total sales (including returns): Rs 68,400 - Rs 1,600 = Rs 66,800
- Gross profit: Rs 66,800 - Rs 45,000 = Rs 21,800
Conclusion
The training account for Mohan Cloth Merchant for the year 2014 shows a gross profit of Rs 21,800. It is essential to track all transactions accurately to calculate the profit and loss effectively.
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