Page 167 - ISCDEBK-XI

Final Accounts and Concept of Trading Account ... 19.5

Solved Question

Illustration 1.

From the following information, prepare Trading Account for the year ended 31st March, 2022:
`
Cost of Goods Sold 15,00,000
Sales 24,00,000
Closing Stock 80,000
Solution: TRADING ACCOUNT
Dr. for the year ended 31st March, 2022 Cr.
Particulars ` Particulars `
To Cost of Goods Sold 15,00,000 By Sales 24,00,000
To Gross Profit c/d 9,00,000
(Transferred to Profit & Loss A/c)
24,00,000 24,00,000

Notes:
1. Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock.
2. Closing Stock is not shown in the credit side of the Trading Account because it has already been adjusted
while calculating the Cost of Goods Sold.