# Question No 05 Chapter No 18 – T.S. Grewal 11 Class

Question No.05 - Chapter No.18- T.S. Grewal +1 Book 2019-Solution

Question No 05 Chapter No 18

5. Prepare Trading Account from the transactions given below:

 Opening Stock 1stApril, 2017 23,000 Purchases Return 2,400 Purchases 29,000 Closing Stock 47,700 Sales Return 500 Carriage Inwards 100 Sales 25,400 Depreciation 2,000

Also pass the Journal entries

The solution of Question No 05 Chapter No 18:-

 Trading Account Particulars Amount Particulars Amount To Opening Stock 25,000 By Sales 25,400 To Purchases 29,000 1,40,000 Less: Sales Return 500 24,900 Less: Purchases Return 2, 400 10,000 To Carriage Inwards By Closing Stoc 47,700 To Gross Profit 22,900 72,600 72,600

Note: Depreciation is an Indirect Expense, therefore it is not shown in the Trading Account.

 Date Particulars L.F. Debit Credit Trading A/c Dr. 52,600 To Opening Stock A/c 23,000 To Purchases A/c 29,000 To Carriage Inwards A/c 100 To Sales Return A/c 500 (Being Transfer of balances to the debit side of Trading A/c) Sales A/c Dr. 25,400 Purchase Return A/c Dr. 2,400 To Trading A/c 27,800 (Being Transfer of balances to the credit side of Trading A/c) Closing Stock A/c Dr. 47,700 To Trading A/c 47,700 (Being Recording of Closing Stock) Trading A/c Dr. 22,900 To Profit & Loss A/c 22,900 (Being Transfer of gross profit to the Profit & Loss A/c)

Final Accounts: Meaning, Definition and Explanation

Trading Account: Meaning, Format and Examples

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

• Chapter No. 1 – Introduction to Accounting
• Chapter No. 2 – Basic Accounting Terms
• Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
• Chapter No. 4 – Bases of Accounting
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book
• Chapter No. 11 – Special Purpose Books II – Other Books
• Chapter No. 12 – Bank Reconciliation Statement
• Chapter No. 13 – Trial Balance
• Chapter No. 14 – Depreciation
• Chapter No. 15 – Provisions and Reserves
• Chapter No. 16 – Accounting for Bills of Exchange
• Chapter No. 17 – Rectification of Errors
• Chapter No. 18 – Financial Statements of Sole Proprietorship
• Chapter No. 19 – Adjustments in preparation of Financial Statements
• Chapter No. 20 – Accounts from incomplete Records – Single Entry System
• Chapter No. 21 – Computers in Accounting
• Chapter No. 22 – Accounting Software – Tally
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book

T.S. Grewal’s Double Entry Book Keeping