Question

Q.9. From the following information, Prepare the Trading Account for the ended 31" march:
Rs.
Rs.
Opening Stock
1,00,000
Wages
2.000
Purchases
2,80,000
Freight
3,600
Closing Stock
80,000
Carriage Inwards
1,000
The Percentage of Gross Profit on Sales is 20%.​

Answer 1

Let sales = 100

Gross profit will be 20.

Therefore, cost of goods sold will be 100 - 20 = 80.

When cost of goods sold is 80 then sales = 100

When cost of goods sold sales is rs. 1 then sales = 100 / 80

When cost of goods sold sales is 306600

Then sales = 100 / 80 × 306600 = 383250.

Calculation of cost of goods sold by =

Opening stock = 100000

Add - purchases 280000

Wages = 2000

Freight = 3600

Carriage inwards = 1000

—----------------------------------------

= 386600

Less closing stock 80000

COGS = 386600 - 80000 = 306600.

Thanks