Question No 05 Chapter No 18 - T.S. Grewal 11 Class

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:-

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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

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Trading Account: Meaning, Format and Examples

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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