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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

 

download 'example handout' pdf

For Closing Entries related to Trading Account Click here. pdf

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