Question

Following information is provided for M/s. Kumar Traders for the year ended 31st March, 2019: Rs. Opening Inventory 1,00,000 Purchases 6,72,000 Carriage Inwards 30,000 Wages 50,000 Sales 11,00,000 Returns inward 1,00,000 Returns outward 72,000 Closing Inventory 2,00,000 You are required to pass necessary closing entries in the journal proper of M/s. Kumar Trade.

Answer 1

Answer:

Explanation:

closing entries on 31 march

>op invent dr  100000

purchases dr   600000                 (6,72,000-72000 return outward)

carriage inwards dr 30000

wages dr                 50000        

          to trading ac                   780000

>trading ac   dr 10 lakh

      to sales                      10 lakh          (1100000-100000 return inward)

>trading ac    dr     200000

     to closing inv          200000