Question

calculate gross profit from the following by preparing trading account: coal gas and water 1520, carriage inward 1860, sales 120000, net purchase 72000, sales return 12000, purchase return 8000, opening stock 16000, closing stock 28000, productive wages 500, import duty 600, salary 1000​

Answer 1

Answer:

Gross Profit  53320

Explanation:

Sales               120000

Less Return     12000

Net Sales      108000

Add:

Closing Stock28000

Credit Total   136000

Less:

Opening Stock                  16000

Purchase  72000

Less Return 8000              64000

Direct Expenses

Coal and Water                        1520

Product Wages                         500

Import Duty                                600

Debit Total                          82620

Gross Profit  = 136000 - 82620 = 53320

Answer 2

Answer:

Gross Profit : 51520

The answer is in the attachment.. Go through the attachment ..

The items are Debited in Trading account :

• Purchases and return

• Carriage Inwards

• Productive wages

• Import duty

• Coal , gas and water

• Opening Stock

The items are Credited :

• Sales and Return

• Closing stock.

Salary is not a direct expenses. So, it wasn't shown in trading account.

Direct Expenses :

Direct expenses are the amount spend directly on the Purchase of goods. Eg : freight, carriage inwards, Octroi, Clearing charges, Power, gas, water, etc..