Question

opening stock 23,000 , purchase 29000 , sales return 500 , sales 25400 , purchase return 2400 , closing stock 47700 , carriage inwards 100 , depreciation 2000. prepare trading account and also pass journal entries​

Answer 1

TRADING ACCOUNT

TO OPENING By closing stock 47700

STOCK. 23000. By sales(25400-500)

TO PURCHASE. =24900

(29000-2400). 26600

To carriage inward 100

Total= 49700. Total= 72600

To GROSS PROFIT=22900 ans

Answer 2

Answer:

Refer to the attachment.

Explanation:

Trading account records direct incomes and direct expenses to calculate Gross Profit.

Direct incomes means sales and direct expenses means those expenses which are directly related to manufacturing of goods.

In the case of this question, we didn't record depreciation because it's not a direct expense; it's an indirect expense.