Question No 07 Chapter No 18 – T.S. Grewal 11 Class

Question No 07 Chapter No 18

Question No 07 Chapter No 18

7.From the following information prepare Trading Account for the year ended 31st March, 2018:

       
Stock on 1st April, 2017 40,000 Returns Outward 80,000
Purchases 4,00,000 Wages and Salaries 50,000
Sales 3,80,000 Returns Inward 20,000
Carriage Inwards 20,000 Stock on 31st March, 2018 1,30,000

The solution of Question No 07 Chapter No 18:-

 

Trading Account    
Particulars

Amount Particulars

Amount
To Opening Stock   40,000 By Sales 3,80,000 4,07,000
To Purchases 4,00,000   Less: Return Inwards 20,000  
To Opening Stock 80,000 3,20,000      
To Carriage Inwards   20,000      
To Wages and Salaries   50,000      
      By Closing Stock   1,20,000
To Gross Profit   50,000      
    4,80,000     4,80,000

Note: Closing Stock is taken at its Market Price
i. e. Rs 1, 20, 000 instead of its Cost i. e. Rs 1, 30, 000. This is because, as per Principle of Conservatism, Closing stock is taken at Cost or Market Price whichever is less.

 

Final Accounts: Definition and Explanation

 

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

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T.S. Grewals Double Entry Book Keeping - Question No 07 Chapter No 18 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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