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प्रश्न
Closing stock is on the credit side of the ______ and also in ______.
विकल्प
Trading account, profit and loss account
Profit and loss account, trading account
Profit and loss account, balance sheet
Trading account, balance sheet
उत्तर
Closing stock is on the credit side of the Trading account and also in balance sheet.
Explanation:
Goods that remain unsold at the end of an accounting period are known as closing stock. They are valued at the end of an accounting year and shown on the credit side of a trading account and the asset side of a balance sheet.
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence:
What is a Trading A/c?
What is meant by purchase returns?
From the following balances taken from the books of Saravanan, calculate gross profit for the year ended December 31, 2017.
| Particulars | ₹ | Particulars | ₹ |
| Opening stock | 1,50,000 | Net sales during the year | 4,00,000 |
| Direct expenses | 8,000 | Net purchases during the year | 1,50,000 |
| Closing Stock | 25,000 |
From the following balances taken from the books of Victor, prepare trading account for the year ended December 31, 2017:
| Particulars | ₹ | Particulars | ₹ |
| Adjusted purchases | 80,000 | Closing stock | 7,000 |
| Sales | 90,000 | Carriage inwards | 3,000 |
| Royalty on purchases of goods | 4,000 | Import duty on purchases of goods | 6,000 |
| Octroi on purchase of goods | 2,000 | Dock charges on purchases | 5,000 |
| Cost of goods manufactured | 5,000 |
Prepare a Trading, Profit and Loss account of Mr. ABC for the year ending on 31st March, 2023 and a Balance Sheet as on 31st March, 2023.
| Particulars | Amount (Dr.) Rs. | Amount (Cr.) Rs. |
| Capital | 80,000 | |
| Drawings | 4,000 | |
| Cash at Bank | 4,700 | |
| Purchase | 66,000 | |
| Sales | 1,15,000 | |
| Purchase Returns | 3,000 | |
| Sales Returns | 6,000 | |
| Discount | 1,200 | |
| Carriage Outwards | 1,800 | |
| Salaries | 18,000 | |
| Trade expenses | 3,600 | |
| Opening stock | 15,000 | |
| Bad debts | 1,800 | |
| Rent | 4,500 | |
| Machinery | 1,08,000 | |
| Furniture | 18,000 | |
| Debtors | 12,000 | |
| Creditors | 30,000 | |
| Stationery | 7,500 | |
| Commission received | 900 | |
| Loan | 43,200 | |
| 2,72,100 | 2,72,100 |
Closing stock on 31st March, 2023 was valued at Rs. 78,000.
Abraham is in business. The following balances were extracted from the books as on 31.12.2018. You are required to prepare a trading account and a profit and loss account for the year ended 31.12.2018 and a balance sheet as on that date.
| Debit (₹) | Credit(₹) | |
| Capital | 32,000 | |
| Drawings | 4,240 | |
| Purchases less Returns | 15,610 | |
| Rates and Taxes | 388 | |
| Salaries | 1,612 | |
| Lighting and Heating | 164 | |
| Electric Power | 384 | |
| Del credere Commission | 414 | |
| Insurance | 206 | |
| Advertising | 214 | |
| Sales less Returns | 34,176 | |
| Bad Debts Written off | 62 | |
| Postage, Telegrams, etc. | 826 | |
| Carriage | 754 | |
| Opening Stock | 6,160 | |
| Wages | 7,962 | |
| Land and Building | 15,840 | |
| Plant and Machinery | 4,034 | |
| Furniture and Fittings | 378 | |
| Sundry Debtors | 6,082 | |
| Sundry Creditors | 4,422 | |
| Cash at Bank | 5,268 | |
| 70,598 | 70,598 |
When preparing the accounts it is necessary to take the following matters into consideration: Closing stock on 31.12.2018 was ₹ 8,760.
Trial Balance as on 31.3.2019 of Ms. Counsel.
| Debit (₹) | Credit (₹) | |
| Purchases and Sales | 2,40,000 | 4,15,000 |
| Wages & Factory Supervisor's Remuneration | 35,000 | |
| Building | 1,80,000 | |
| Machinery & Equipment | 4,75,000 | |
| Commission | 2,800 | 1,600 |
| Freehold Land | 1,00,000 | |
| Watch Dogs Squad | 30,100 | |
| Debit Notes & Credit Notes (issued in connection with goods) |
10,000 | 15,000 |
| Creditors & Debtors | 60,000 | 45,000 |
| Salaries & Staff Welfare | 38,000 | |
| Bill (drawn to guarantee payment) | 10,000 | 7,000 |
| Building Repairs | 15,000 | |
| Cash & Bank | 50,000 | |
| Bonus | 2,500 | |
| Discounts | 3,200 | 14,600 |
| Watch Dogs Upkeep Costs | 6,600 | |
| Accounts of the owner | 35,000 | 5,95,000 |
| Interest-free Loan | 1,00,000 | |
| General Reserve | 1,30,000 | |
| Opening Stock | 30,000 | |
| 13,23,200 | 13,23,200 |
Compile Final Accounts:
- Closing Stock at the cost price is ₹ 8,000 more than the opening stock - but the ruling market price is ₹ 5,000 only, on 31.3.2019.
From the following Trial Balance of Rinky, prepare a Trading Account and a Profit & Loss Account for the year ended 31.12.2018 and a Balance Sheet on that date.
| TRIAL BALANCE | |||
| Dr. (₹) | Cr. (₹) | ||
| Building | 20,000 | Capital Account | 25,000 |
| Depreciation on above | 1,000 | Provision for Depreciation on Machinery on 1.1.2018 | 800 |
| Machinery | 6,800 | Creditors | 12,000 |
| Furniture | 2,000 | Bank Loan | 6,000 |
| Drawings | 1,500 | Sales | 53,000 |
| Debtors | 8,000 | Outstanding Carriage Inward | 200 |
| Cash | 1,600 | ||
| Opening Stock | 5,000 | ||
| Purchase | 31,000 | ||
| Wages | 3,000 | ||
| Carriage Inwards | 400 | ||
| Salary | 4,000 | ||
| Prepaid Salary | 1,000 | ||
| Advertisement | 300 | ||
| Insurance | 3,500 | ||
| Packing Materials | 7,900 | ||
| 97,000 | 97,000 | ||
Closing Stock ₹ 15,000.
From the following trial balance of Shri Rai Bahadur, prepare Trading, Profit and Loss Account for the year ending 31st March, 2018 and a Balance Sheet as on that date:
| TRIAL BALANCE | |||
| Debit Balance | (₹) | Credit Balance | (₹) |
| Drawings | 4,240 | Capital | 32,000 |
| Purchase less returns | 15,610 | Sales less Returns | 34,176 |
| Rates and Taxes | 388 | Sundry Creditors | 4,422 |
| Salaries | 1,612 | ||
| Lighting and Heating | 164 | ||
| Electric Power | 384 | ||
| Commission | 414 | ||
| Insurance | 206 | ||
| Advertising | 214 | ||
| Bad Debts | 62 | ||
| Postage, Telegrams, etc. | 826 | ||
| Carriage | 754 | ||
| Opening Stock | 6,160 | ||
| Wages | 7,962 | ||
| Land and Building | 15,840 | ||
| Plant and Machinery | 4,034 | ||
| Furniture and Fittings | 378 | ||
| Sundry Debtors | 6,082 | ||
| Cash at Bank | 5,268 | ||
| 70,598 | 70,598 | ||
The closing stock on 31st March was valued at ₹ 8,760.
From the following Trail Balance of A.B. Chandra as on 31st December, 2019.
| TRIAL BALANCE of A.B. Chandra As on 31.12.2019 | |||
| Particulars | Amount (Dr.) | Particulars | Amount (Cr.) |
| Cash in Hand | 2,000 | Discount Received | 750 |
| Drawings | 2,800 | Capital | 40,000 |
| Opening Stock (01/01/2018) | 4,000 | Purchases Returns | 1,250 |
| Wages | 2,000 | Sales | 83,000 |
| Cash at Bank | 3,500 | Creditors | 15,000 |
| Insurance | 700 | Bank Loan | 10,000 |
| Trade Expenses | 1,200 | ||
| Furniture | 20,000 | ||
| Buildings | 61,000 | ||
| Salaries | 5,000 | ||
| Discount Allowed | 750 | ||
| Sales Returns | 3,000 | ||
| Purchases | 31,250 | ||
| Debtors | 10,000 | ||
| Telephone Charges | 1,000 | ||
| Bills Receivable | 1,800 | ||
| 1,50,000 | 1,50,000 | ||
The closing stock was valued at ₹ 12,000.
You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2019 and a Balance Sheet as on 31st December, 2019.
