Question

Prepare Trading Account from the transactions givne below:

	₹		₹
Opening Stock	23,000	Purchases Return	2,400
Purchases	29,000	Closing Stock	47,700
Sales Return	500	Carriage Inwards	100
Sales	25,400	Depreciation	2,000

Also pass the Journal entries.

Answer 1

Trading Account
Dr.							Cr.
Particulars			Amount (Rs)	Particulars		Amount (Rs)
Opening Stock			23,000	Sales	25,400
Purchases		29,000		Less: Sales Return	(500)	24,900
Less: Purchases Return		(2,400)	26,600	Closing Stock		47,700
Carriage Inwards			100
Gross Profit (Balancing Figure)			22,900
			72,600			72,600

Note: Depreciation is an Indirect Expense, therefore it is not shown in the Trading Account.

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
	Trading A/c	Dr.		52,600
	To Opening Stock A/c				23,000
	To Purchases A/c				29,000
	To Carriage Inwards A/c				100
	To Sales Return A/c				500
	(Transfer of balances to the debit side of Trading A/c)
	Sales A/c	Dr.		25,400
	Purchase Return A/c	Dr.		2,400
	To Trading A/c				27,800
	(Transfer of balances to the credit side of Trading A/c)
	Closing Stock A/c	Dr.		47,700
	To Trading A/c				47,700
	(Recording of Closing Stock)
	Trading A/c	Dr.		22,900
	To Profit & Loss A/c				22,900
	(Transfer of gross profit to the Profit & Loss A/c)