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Byju's Answer
Standard XI
Accountancy
Finding Closing Stock
Which of the ...
Question

Which of the following are part of trading account?


A

Closing stock

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B

Gross profit

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C

Net profit

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D

Both A & B

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Solution

The correct option is D

Both A & B


Closing stock and Gross profit are part of the trading account.


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Q.

Give the correct chronological order of ascertainment of the following profits from trading and profit and loss account Operating rofit, gross profit, net profit .

Q.

Calculate gross profit, operating profit and net profit from the following.
ParticularsAmt (Rs.)ParticularsAmt (Rs.)Opening Stock 4,00,000Commission Paid 4,800Purchases38,00,000Commission Received 12,000Sales50,00,000Travelling Expenses 9,600Purchases Return 1,40,000Office Expenses 7,000Sales Return 2,00,000Interest on Long-term Loans 44,000Wages 1,60,000Dividend on Investments 5,600Advertising 24,000Printing and Stationery 7,200Salaries 3,56,000Loss on Sale of Machinery 70,000Rent and Taxes 1,24,000Carriage Outwards 2,800Lighting 30,000Loss by Theft 50,200 Gain on Sale of Building1,00,000

Closing stock was valued at Rs. 5,00,000

Q.
Sales
Rs.		Opening Stock
Rs.		Purchases
Rs.		Closing Stock
Rs.		Cost of goods sold
Rs.		Gross Profit
Rs.		Trading Expenses
Rs.		Net Profit
Rs.
30,000 12,000 20,000 ? 18,000 ? 8,000 ?
From the above answer following :
(i) Net profit will be
Q. From the following Trial Balance of M/s Arjun and Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet:
Heads of Accounts
Debit
Balances
(₹)
Credit
Balances
(₹)
Drawings ................................................................................
1,80,000
…
Capital ................................................................................
…
8,00,000
Purchases ................................................................................
8,26,000
...
Sales ................................................................................
…
15,50,000
Opening Stock ................................................................................
4,20,000
…
Returns Outward ................................................................................
…
16,000
Carriage Inwards ................................................................................
12,000
…
Wages ................................................................................
40,000
…
Power ................................................................................
60,000
…
Machinery ................................................................................
5,00,000
…
Furniture ................................................................................
1,40,000
…
Rent ................................................................................
2,20,000
…
Salary ................................................................................
1,50,000
…
Insurance ................................................................................
36,000
…
8% Bank Loan ................................................................................
…
2,50,000
Debtors ................................................................................
2,06,000
…
Creditors ................................................................................
…
1,89,000
Cash in Hand ................................................................................
15,000
…
Total
28,05,000
28,05,000

Adjustments:
(i) Closing Stock ₹ 6,40,000.
(ii) Wages Outstanding ₹ 24,000.
(iii) Bad Debts ₹ 6,000 and Provision for Bad and Doubtful Debts to 5% on Debtors.
(iv) Rent is paid for 11 months.
(v) Loan from bank was taken on 1st October, 2017.
(vi) Provide Depreciation on Machinery @ 10% p.a.
(vii) Provide Manager’s Commission at 10% on net profit after charging such commission.
Q. From the following Trial Balance of M/s. Shradha & Sons as on 31st March, 2018, prepare Trading and Profit and Loss Account and Balance Sheet.
Heads of Accounts
Dr.
Balance
(₹)
Cr.
Balance
(₹)
Capital ................................................................................
…
80,000
Drawings ................................................................................
18,000
…
Sales ................................................................................
…
1,55,000
Purchases ................................................................................
82,600
…
Stock (1st April, 2017) ................................................................................
42,000
…
Returns Outward ................................................................................
…
1,600
Carriage Inwards ................................................................................
1,200
…
Wages ................................................................................
4,000
…
Power ................................................................................
6,000
…
Machinery ................................................................................
50,000
…
Furniture ................................................................................
14,000
…
Rent ................................................................................
22,000
…
Salary ................................................................................
15,000
…
Insurance ................................................................................
3,600
…
8% Bank Loan ................................................................................
…
25,000
Debtors ................................................................................
20,600
…
Creditors ................................................................................
…
18,900
Cash in Hand ................................................................................
1,500
…
Total
2,80,500
2,80,500

Adjustments:
(i) Closing Stock ₹ 64,000.
(ii) Wages outstanding ₹ 2,400.
(iii) Bad Debts ₹ 600.
(iv) Provision for Doubtful Debts to be 5%.
(v) Rent is paid for 11 months.
(vi) Insurance premium is paid per annum, ended 31st May, 2018.
(vii) Loan from the bank was taken on 1st October, 2017.
(viii) Provide Depreciation on machinery @ 10% and on Furniture @ 5%.
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