Question No 09 Chapter No 18
9. Following balances appear in the Trail Balance of a firm as on 31st March, 2018:
| Opening Stock: | Raw Material | 80,000 |
| Finished Goods | 1,40,000 | |
| Purchases | 3,60,000 | |
| Sales | 7,00,000 | |
| Returns: | Purchases | 10,000 |
| Sales | 6,000 | |
| Wages | 1,30,000 | |
| Factory Expenses | 90,000 | |
| Freight: | Inwards | 20,000 |
| Outwards | 30,000 | |
| At the end of the accounting period, stock was: | ||
| Raw Materials | 70,000 | |
| Work-in-Process | 20,000 | |
| Finished Goods | 1,10,000 | |
Prepare Trading Account of the firm
The solution of Question No 09 Chapter No 18:-
| Trading Account | |||||
| Particulars |
Amount | Particulars |
Amount | ||
| To Opening Stock | By Sales | 7,00,000 | |||
| Raw Materials | 80,000 | Less: Return Inwards | 6,000 | 6,94,000 | |
| Finished Goods | 1,40,000 | 2,20,000 | |||
| To Purchases | 3,60,000 | 20,000 | |||
| Less: Return Outwards | 1,40,000 | 50,000 | By Closing Stock | ||
| To Freight Inwards | 20,000 | Raw Materials | 70,000 | ||
| To Wages | 1,30,000 | Work-in-Progress | 20,000 | ||
| To Factory Expenses | 6,000 | Finished Goods | 1,10,000 | 2,00,000 | |
| To Gross Profit | 84,000 | ||||
| 8,94,000 | 8,94,000 | ||||
Note: Note: Freight outwards is an indirect expense. It will be recorded in Profit & Loss A/c.
Final Accounts: Meaning, 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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