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CBSE Class 11-commerce Answered

Calculate closing stock from the following :   Rs.  Sales 40,000 Purchases 24,600 Returns Inwards 1,000 Returns outwards  2,000 Carriage Inwards 800 Gross profit 16,000   Is it correct that debit balance in the profit and loss account is profit?
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
answered-by-expert Expert Answer

 

Trading Account

Dr.

 

 

 

 

 Cr.

Particulars

 

Rs. 

Particulars

 

Rs. 

To Purchases

24,600

 

By Sales

40,000

 

(-) Purchase Return

2,000

22,600

(-) Sales Return

1,000

39,000

To Carriage Inward

 

800

By Closing Stock

 

 400

To Gross Profit

 

16,000

 

 

 

 

 

39,400

 

 

39,400

 

 

No, it is not correct; debit balance in profit and loss account implies loss as expenses are more than the revenue.

 

Answered by | 01 Jul, 2016, 05:14: PM
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