Question

memorandum trading account is prepared to find​

Answer 1

Memorandum Trading Account is used to find the estimated stock.

Explanation:

In case of fire, Memorandum Trading account is required to find the value of estimated Stock. It is prepared with the help of Gross Profit ratio of the last year, Opening Stock, Purchase, Sale, and Direct Expenses.

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Answer 2

Answer:

Memorandum trading account is prepared to find​account opening stock, net purchases up to the date of fire, direct expenses up to the date of fire, estimated gross profit on the debit side and net sales on the credit side.

Explanation:

• Memorandum Trading Account is a trading account which takes into account opening stock, net purchases up to the date of fire, direct expenses up to the date of fire, estimated gross profit on the debit side and net sales on the credit side.
• The balancing figure of Memorandum Trading A/c is the value of estimated stock as on the date of fire.
• In case, if the rate of gross profit is not given a Trading A/c for the previous year should be prepared.
• It helps to find out the gross profit of the previous year.