₹
|
₹
|
||
Stock on 1st April, 2018 |
40,000
|
Returns Outward |
80,000
|
Purchases |
4,00,000
|
Wages and Salaries |
50,000
|
Sales | 3,80,000 | Returns Inward | 20,000 |
Carriage Inwards |
20,000
|
Stock on 31st March, 2019 |
1,30,000
|
Trading Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
||||
Opening Stock |
40,000 |
Sales |
3,80,000 |
|
|||
Purchases |
4,00,000 |
|
Less: Return Inwards |
(20,000) |
3,60,000 |
||
Less: Return Outwards |
(80,000) |
3,20,000 |
Closing Stock |
1,20,000 |
|||
Carriage Inwards |
20,000 |
|
|
||||
Wages and Salaries |
50,000 |
|
|
||||
Gross Profit (Balancing Figure) |
50,000 |
|
|
||||
|
4,80,000 |
|
4,80,000 |
||||
|
|
|
|
||||
Note: Closing Stock is taken at its Market Price (i.e. Rs 1,20,000) instead of its Cost (i.e. Rs 1,30,000). This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.