Question

From the following information, prepare the Trading Account for the year ended 31st March, 2017:

	₹
Cost of Goods Sold	12,10,000
Opening Stock	50,000
Closing Stock	80,000
Carriage Inwards	15,000
Sales	15,00,000

Answer 1

Trading Account for the year ended March 31, 2017
Dr.					Cr.
Particulars		Amount (Rs)	Particulars	Amount (Rs)
Cost of Goods Sold		12,10,000	Sales	15,00,000
Gross Profit (Balancing Figure)		2,90,000
		15,80,000		15,80,000

Note:

So, when the value of cost of goods sold is given, the items used to calculate it (i.e. opening stock, net purchases, direct expenses and closing stock) will not appear in the Trading Account.