Calculate the amount of gross profit with the help of equation and by preparing trading account
Follow up Problem 3
Account:
Opening stock
Cash purchases
Cash sales
Credit purchases
Credit sales
Sales return
Purchases return
Direct expenses
Closing stock
40,000
35,000
75,000
65,000
55,000
5,000
10,000
20,000
32,000
Answers
Explanation:
Trading and Profit and Loss Account
as on 31st March,2010
Dr Cr
Particulars Amt. (Rs.) Particular Amt. (Rs.)
To Opening Stock 10,000 By Sales 80,000
To Purchase 40,000 (-) Sales Return 200
79,800
(-) Purchase Return 600
39,400 By Closing Stock 2000
To Wages 6,000
To Dock and Clearing Charges
4,000
To Gross Profit c/d 22,400
81,800 81,800
To Donation and Charity
600 By Gross Profit b/d 22,400
To Interest on Capital
2000 By Interest on Drawings
140
To Depreciation on Furniture
565 By Interest on Investment
360
To Depreciation on Land and Machine
2,150 By Miscellaneous Income
6,000
To Lighting
500 By Rent Received 2,000
To Net Profit
24,985 (-) Unexpired Rent 100
1,900
30,800 30,800
Balance Sheet
as on 31st March, 2010
Liabilities Amt. (Rs.) Assets Amt. (Rs.)
Capital 40,000 Furniture 11,300
(+) Interest on Capital
(+) Net Profit
(-) Drawings 2,000
42,000
24,985
66,985
2,000 (-) Depreciation @5%
565
10,735
(-) Interest
140 Land and Machinery
43,000
Unexpired Rent 100 (-) Depreciation @ 5%
Investment 2,150
40,850
6,000
Sales Tax Collected
1,000 (+) Interest @ 6%
360
Creditors
7,000 Debtors 6,000
Cash 3,000
Patents 4,000
Closing Stock 2,000
72,945 72,945 ............................,...............,..