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प्रश्न
What are the objectives of preparing trading account?
उत्तर
- The trading account provides information about gross profit and gross loss.
- It provides an opportunity to safeguard against possible losses.
- It provides information about direct expenses and direct incomes.
APPEARS IN
संबंधित प्रश्न
Carriage inwards will be shown ______.
Prepare trading account in the books of Mr. Sanjay for the year ended 31st December 2017:
| Particulars | ₹ | Particulars | ₹ |
| Opening stock | 570 | Purchases | 15,800 |
| Sales | 26,200 | Purchases returns | 90 |
| Sales returns | 60 | Closing stock | 860 |
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 |
Closing stock appears in the Final Accounts in the ______.
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.
Gross Profit/loss is transferred from ______.
Closing stock is on the credit side of the ______ and also in ______.
The following is the trial balance of Mr. R.P. Sharma for the year ended 31st December, 2018. Compile the final accounts for him, after attending to the adjustments and thereafter also submit the required information, listed by him.
| Debit (₹) | Credit (₹) | |
| Land | 1,00,000 | |
| Freehold Premises | 60,000 | |
| Bills Receivable and Payable | 20,000 | 24,000 |
| Wages | 15,000 | |
| Rejection of Goods Including Price Adjustments | 2,500 | 3,500 |
| Personal Accounts Resulting from Credit Sales and Purchases | 31,000 | 15,000 |
| Purchase and Sales Including Cash Transactions | 40,500 | 96,000 |
| Salaries | 7,000 | |
| Insurance and Municipal Taxes | 1,500 | |
| Rentals | 2,000 | 4,500 |
| Bad Debts | 600 | |
| Carriage | 3,000 | |
| Opening Stock | 5,000 | |
| Commission Accounts | 500 | 600 |
| Vehicles | 62,000 | |
| Machinery | 85,000 | |
| Drawings and Capital Accounts | 8,000 | 1,75,000 |
| Loan from the S.F.C. | 1,25,000 | |
| 4,43,600 | 4,43,600 |
Closing stock value is ₹ 7,500.
On 31st December, 2018 the following Trial Balance, was extracted from the books of Mohan:
| Debit (₹) | Credit (₹) | |
| Capital | 30,000 | |
| Drawings | 5,000 | |
| Drs. and Crs. | 20,000 | 10,000 |
| Loan | 9,500 | |
| Interest on Loan | 300 | |
| Cash | 2,000 | |
| Provision for Bad Debts | 700 | |
| Stock (1.1.2018) | 6,800 | |
| Motor Vehicles | 10,000 | |
| Bank | 3,500 | |
| Land and Building | 12,000 | |
| Bad Debts | 500 | |
| Purchases and Sales | 66,000 | 1,10,000 |
| Returns | 8,000 | 1,500 |
| Carriage Outward | 2,500 | |
| Carriage Inward | 3,000 | |
| Salaries | 9,000 | |
| Rent and Insurance | 3,000 | |
| Advertising | 3,500 | |
| Discount | 500 | |
| General Expenses | 3,400 | |
| B/R and B/P | 6,000 | 2,000 |
| Rent Received | 300 | |
| 1,64,500 | 1,64,500 |
Prepare a Trading Account and a Profit and Loss Account for the year ended 31st December, 2018 and a Balance Sheet as on that date after taking into account the following:
Stock on 31st December, 2018 was valued at ₹ 7,000.
The following is the Trial Balance of ABC Industries as on 31st December 2015.
| TRIAL BALANCE of ABC Industries as on 31.12.2015 | |||
| Particulars | Amount (Dr.) | Particulars | Amount (Cr.) |
| Salaries | 4,000.00 | Sales | 83,000.00 |
| Cash Balance | 2,000.00 | Rent Received | 2,000.00 |
| Bank Balance | 3,000.00 | Purchases Returns | 1,000.00 |
| Wages | 1,500.00 | Creditors | 7,000.00 |
| Insurance | 500.00 | Capital Account | 25,000.00 |
| Trade Expenses | 7,000.00 | ||
| Discount Allowed | 750.00 | ||
| Opening Stock (1.1.2015) | 5,000.00 | ||
| Buildings | 40,000.00 | ||
| Furniture | 15,000.00 | ||
| Sales Returns | 250.00 | ||
| Drawings | 1,000.00 | ||
| Debtors | 5,000.00 | ||
| Purchases | 30,000.00 | ||
| Legal Charges | 1,000.00 | ||
| Advertisement Expenses | 2,000.00 | ||
| 1,18,000.00 | 1,18,000.00 | ||
The closing stock was valued at ₹ 9,000.
You are required to prepare a Trading Account and a Profit and Loss Account for the year ending 31st December 2015 and a Balance Sheet as on 31st December, 2015.
