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Example
On 31st December 2007, the books of XYZ show the following balances:
| | $ |
Opening Stock | 1000 |
Purchases | 2600 |
Sales | 9000 |
Return outwards | 200 |
Return inwards | 450 |
Carriage inwards | 40 |
Warehouse worker wages | 200 |
Closing Stock was valued at $400
Solution
| Trading Account of XYZ for the year ended 31st December 2007 | |||||
| | $ | $ | | $ | $ |
Opening stock | | 1000 | Sales | 9000 | |
Purchases | 2600 | | Less Returns inwards | 450 | |
Less Returns outwards | 200 | | | | 8550 |
| | 2400 | | | | |
Add Carriage inwards | 40 | | | | |
Worker wages | 200 | | | | |
| | | 2640 | | | |
Cost of goods available for sale | | 3640 | | | |
Less Closing stock | | 400 | | | |
Cost of goods sold | | 3240 | | | |
Gross Profit | | 5310 | | | |
| | | 8550 | | | 8550 |
