Question

From the following particulars of Bhomick Brothers, Kathihar, prepare a Trading Account for the year ended 31st March, 2021 and calculate cost of goods sold.

$\begin{array}{cc}& \left(Rs\right)\\ \text{Opening Stock 1.4.21011}& 2,00,000\\ \text{Purchases}& 6,00,000\\ \text{Purchase Returns}& 50,000\\ \text{Sundry Factory Overheads}& 50,000\\ \text{Carriage}& 30,000\\ \text{Royalty on Production}& 20,000\\ \text{Salary to Foreman}& 1,00,000\\ \text{Sales (including Sales Tax Collected Rs 6,000)}& 4,00,000\\ \text{Sales Returns}& 44,000\\ \text{Closing Stock 31.3.2012}& 2,50,000\end{array}$

Answer 1

In the books of Bhomick Brothers, Kathihar
Trading A/c
for the year ended 31st Mar.2012

$\begin{array}{cccc}\text{Particulars}& \text{Amount(Rs)}& \text{Particulars}& \text{Amount (Rs)}\\ \text{To opening stock}& 2,00,000& \text{By Sales}4,00,000& \\ \text{To purchases}6,00,000& & \text{Less:Sales Tax}\underset{–}{6,000}& \\ \text{Less: Returns}\underset{–}{50,000}& 5,50,000& 3,94,000& \\ \text{To Direction Expenses}& & \text{Less:Return}\underset{–}{44,000}& 3,50,000\\ \text{S.Factory Overheads}& 50,000& \text{By Closing Stock}& 2,50,000\\ \text{Carriage}& 30,000& \text{By Gross Loss transferred}& \\ \text{Royalty on Production}& 20,000& \text{to Profit \& Loss A/c}& 3,50,000\\ \text{Foreman's Salary}& 1,00,000& & \\ & \underset{–}{\overline{9,50,000}}& \underset{–}{\overline{9,50,000}}& \end{array}$

Cost of goods sold =Net Sales +Gross Loss
=3,50,000+3,50,000
=7,00,000