Question

Question 10.
From the following information, prepare Trading account for the year ended 31st March, 2018:
Adjusted Purchases ₹ 5,50,000; Sales ₹ 6,25,000; Freight and Carriage Inwards ₹ 3,000; Wages ₹ 7,000; Freight and Cartage Outwards ₹ 2,500; Closing Stock ₹ 50,000.

Answer 1

Answer:

On the debit side of the trading account

1. AdjustEd purchases
2. freight and carriage inwards
3. wages
4. On the credit side of trading account
5. sales
6. the balancing figure will be the gross profi or gro loss

Explanation:

Closing stock is not included because purchases are already adjusted and the remaining expense come in the profit and loss acount

Answer 2

The trading account is shown below:

Explanation:

The trading account is shown as:

NOTE:

1. Freight and Carriage Outward are not Direct Expense, though not recorded in trading account.

2. Adjusted Purchases = Net Purchases + Opening Stock - Closing Stock, So, closing stock is not considered here.

You can learn more from here about trading account:

https://brainly.in/question/1828395

You can learn more from here about trading account:

https://brainly.in/question/15305926