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प्रश्न
Closing stock is on the credit side of the ______ and also in ______.
पर्याय
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
Carriage inwards will be shown ______.
It is an account prepared to ascertain the gross profit/loss. It is a nominal account and represents the first stage of final accounts of a trading organisation.
Wages, carriage inward are recorded on the ______ side of the ______.
Why is a Trading Account prepared?
From the following trial balance and other additional information obtained from the books of Mr. Sunil Gavaskar, prepare his trading account and the profit and loss account for the half-year ended 30th September, 2018 and his balance sheet as on that date:
| Debit (₹) | Credit (₹) | |
| Capital Account | - | 1,55,000 |
| Drawings Account | 9,000 | |
| Trade Expenses | 12,000 | |
| Cash in Hand | 750 | |
| Cash at Bank | 22,700 | |
| Freehold Premises | 1,30,000 | |
| Stock as on 1.4.2018 | 35,000 | |
| Purchases and Sales | 75,000 | 2,50,000 |
| Returns | 2,800 | 2,000 |
| Carriage Inward | 1,500 | |
| Carriage Outward | 3,500 | |
| Sundry Debtors and Sundry Creditors | 48,000 | 25,000 |
| Bills Receivable and Bills Payable | 22,000 | 10,500 |
| Furniture and Fixtures | 15,400 | |
| Bad Debts | 1,500 | |
| Wages | 25,000 | |
| Salaries | 19,850 | |
| Advertisement | 15,000 | |
| Rent, Rates and Taxes | 3,500 | |
| 4,42,500 | 4,42,500 |
- Stock was valued at ₹ 40,000 on 30.9.2018.
The following is the trial balance obtained from the books of Mr. G. Vishwanath as on 30th June, 2019:
| Debit (₹) | Credit (₹) | |
| Capital | 50,000 | |
| Drawings | 1,000 | |
| Stock as on 1.7.2018 | 28,000 | |
| Loose Tools as on 1.7.2018 | 1,000 | |
| Sundry Debtors and Sundry Creditors | 25,000 | 15,000 |
| Purchases and Sales | 90,000 | 1,72,000 |
| Returns | 750 | 550 |
| Discounts | 250 | 300 |
| Land and Building | 88,000 | |
| Salaries and Wages | 33,000 | |
| Carriage Inward | 1,200 | |
| Carriage Outward | 1,500 | |
| Insurance | 1,000 | |
| Commission | 18,550 | |
| Cash in Hand | 1,700 | |
| Bank Overdraft | 20,000 | |
| Advertisement | 2,000 | |
| Bills Receivable and Bills Payable | 7,500 | 5,500 |
| 2,81,900 | 2,81,900 |
You are required to prepare Mr. Vishwanath's trading account and profit and loss account for the period ended 30 June, 2019 and a balance sheet as on that date after taking into account the following adjustments.
- Stock valued on 30.6.2019 at ₹ 25,000.
Mr. P.H. Mehta is in business. The following balances were extracted from the books as on 31.12.2018. You are required to prepare the Trading Account and the Profit and Loss Account for the year ended 31.12.2018 and the Balance Sheet as on that date.
| Debit (₹) | Credit (₹) | |
| Capital | 1,98,000 | |
| Drawings | 10,000 | |
| Purchases and Returns Outward | 1,18,800 | 500 |
| Salaries | 21,650 | |
| Rate and Taxes | 950 | |
| Office Lighting and Cooling | 2,700 | |
| Import Duty | 2,200 | |
| Insurance | 250 | |
| Agency Commission | 900 | |
| Advertising | 5,000 | |
| Returns Inward and Sales | 3,48,500 | |
| Bad Debts | 800 | |
| Postage and Telegrams | 800 | |
| Discount Received | 150 | |
| Carriage for Door Delivery to Customers | 1,400 | |
| Opening Stock | 6,200 | |
| Wages | 27,700 | |
| Plant and Machinery | 2,05,000 | |
| Land and Buildings | 1,10,000 | |
| Furniture and Fittings | 3,000 | |
| Sundry Debtors and Creditors | 39,600 | 20,000 |
| Cash at Bank | 10,000 | |
| Petty Cash Balance | 200 | |
| 5,67,150 | 5,67,150 |
Closing stock on 31.12.2018 was ₹ 48,700.
From the following Trial Balance of Mr. Rajesh, prepare final accounts for the year ended 31.3.2019:
| Debit (₹) | Credit (₹) | |
| Opening Stock | 19,000 | |
| Salaries | 10,500 | |
| Wages | 8,000 | |
| Railway Freight - Purchases & Imports | 2,500 | |
| General Office Expenses | 13,000 | |
| Annual Insurance | 2,000 | |
| Plant and Machinery | 50,000 | |
| Purchases and Sales | 1,20,000 | 2,53,000 |
| Rent | 7,500 | |
| Bad Debts and its Recoveries | 300 | 1,000 |
| Buildings and Sheds | 60,000 | |
| Bills Receivable and Payable | 12,200 | 4,000 |
| 10% Bank of Progress Loan | 50,000 | |
| Travel Costs | 15,000 | |
| Returns and Price Adjustments | 3,000 | 1,500 |
| Legal and Other Consultancy Fees | 10,000 | |
| Repairs | 8,600 | |
| Bank Account | 10,000 | |
| Capital and Drawings | 4,500 | 65,000 |
| Interest | 6,000 | |
| Debtors and Creditors | 35,000 | 22,600 |
| 3,97,100 | 3,97,100 |
Closing stock is valued at ₹ 45,000 (Its market price is only ₹ 40,000).
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.
Prepare a Trading, Profit and Loss A/c. and Balance Sheet of M/s. Sultan Enterprises for the year ended 31st March, 2010 from the following Trial Balance:
| Trial Balance as on 31.03.2010 | ||
| Heads of Accounts | Dr. (₹) | CR. (₹) |
| Opening Stock | 15,000 | |
| Salary | 2,400 | |
| Purchase & Sales | 80,000 | 1,20,000 |
| Machinery | 40,000 | |
| Returns | 4,000 | 5,000 |
| Commission Received | 6,000 | |
| Investments | 10,000 | |
| Interest on Investment | 1,200 | |
| Carriage on Purchase | 3,000 | |
| Rent & Rates | 4,000 | |
| Debtors & Creditors | 22,800 | 15,700 |
| Bills Receivable & Bills Payable | 3,400 | 4,100 |
| Cash-in-hand | 6,400 | |
| Wages | 18,600 | |
| Discount Allowed | 5,200 | |
| Royalty Paid | 12,000 | |
| Discount Received | 6,000 | |
| Drawings and Capital | 1,200 | 70,000 |
| 2,28,000 | 2,28,000 | |
Closing Stock was ₹ 15,250.
