Question

Following balances appear in the Trail Balance of a firm as on 31st March, 2018:

		₹
Opening Stock:	Raw Material	80,000
	Finished Goods	1,40,000
Purchases		3,60,000
Sales		7,00,000
Returns:	Purchases	10,000
	Sales	6,000
Wages		1,30,000
Factory Expenses		90,000
Freight:	Inwards	20,000
	Outwards	30,000
At the end of the accounting period, stock was:
Raw Materials		70,000
Work-in-Process		20,000
Finished Goods		1,10,000

Prepare Trading Account of the firm.

Answer 1

Financial Statement of….
Trading Account for the year ended March 31,2018
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock				Sales	7,00,000
Raw Materials		80,000		Less: Return Inwards	6,000	6,94,000
Finished Goods		1,40,000	2,20,000	Closing Stock
Purchases		3,60,000		Raw Materials	70,000
Less: Return Outwards		10,000	3,50,000	Work-in-Progress	20,000
Freight Inwards			20,000	Finished Goods	1,10,000	2,00,000
Wages			1,30,000
Factory Expenses			90,000
Gross Profit (Balancing Figure)			84,000
			8,94,000			8,94,000

Note: Freight outwards is an indirect expense. It will be recorded in Profit & Loss A/c.