Opening stock, purchases and direct expenses are credited to trading account.

True

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False

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Solution

The correct option is B False
False. opening stock, purchases and direct expenses are debited to trading account. Closing stock, sales are credited to trading account.

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Similar questions

Q. If there is no opening or closing stock, the total of purchases and direct expenses is taken as _______.

Q. From the following balances, prepare Trading and Profit and Loss Account and Balance Sheet:

Debit Balances:	₹	Debit Balances (Contd.):	₹
Machinery	3,50,000	Rent	45,000
Debtors	2,70,000	Sundry Expenses	20,000
Drawings	90,000	Carriage	15,000
Purchases	9,50,000	Credit Balances:
Wages	5,00,000	Capital	10,00,000
Bank	1,50,000	Creditors	1,40,000
Opening Stock	2,00,000	Sales	14,50,000

Closing Stock was valued at ₹ 30,000.

Q. If opening stock is

10, 000

, Purchases

20, 000

, Direct expenses

10, 000

, Indirect expenses

30, 000

. Find the value of cost of goods sold?

The following is the Trial Balance of Mr. Deepak as on March 31, 2017. You are required to prepare trading account, profit and loss account and a balance sheet as on date:

Account title	Debit Amount Rs	Account title	Credit Amount Rs
Drawings	36,000	Capital	2,50,000
Insurance	3,000	Bills payable	3,600
General expenses	29,000	Creditors	50,000
Rent and taxes	14,400	Discount received	10,400
Lighting (factory)	2,800	Purchases return	8,000
Travelling expenses	7,400	Sales	4,40,000
Cash in hand	12,600
Bills receivable	5,000
Sundry debtors	1,04,000
Furniture	16,000
Plant and Machinery	1,80,000
Opening stock	40,000
Purchases	1,60,000
Sales return	6,000
Carriage inwards	7,200
Carriage outwards	1,600
Wages	84,000
Salaries	53,000

Closing stock Rs 35,000.

Q. In case the opening stock was Rs. 5,000, purchases Rs.15,000, direct expenses Rs.2,000 and closing stock Rs. 2500, the cost of goods sold had been _______________.

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Opening stock, purchases and direct expenses are credited to trading account.

The correct option is B FalseFalse. opening stock, purchases and direct expenses are debited to trading account. Closing stock, sales are credited to trading account.

The correct option is B False
False. opening stock, purchases and direct expenses are debited to trading account. Closing stock, sales are credited to trading account.