Question

27.From the following information, prepare the Trading Account for the year ended 31st March, 2019:
Adjustment Purchases Rs. 24,00,000; Freight and Carriage Inwards Rs. 20,000; Freight and Carriage Outwards Rs. 15,000; Wages Rs. 1,70,000; Fuel and Power Rs. 30,000; Office Rent Rs. 18,000; Trade Expenses Rs. 10, 000; Sales Rs. 30,00,000; Closing Stock Rs. 1,50,000.​

Answer 1

Answer:

The trading a/c is in the attachment ,,, Go through it.. Hope It's right..

Gross Profit = 5,20,000

Explanation:

Here, we didn't record the office rent and Freight and carriage Outwards because these are recorded in Profit and Loss account.

In trading a/c we only record the direct expenses.

Direct Expenses :

Direct expenses are the amount spend directly on the Purchase of goods. Eg:- Frieght, carriage inwards, octroi, Clearing charges , power , gas , water etc..