trading account

write the equation to calculate gross profit

Answer explanation

gross profit=sales -(purchase+direct expences)

the profit arising out of trading account is called

cost of goods sold=(opening stock+-------------+direct expenses)-closing stock

in trading account , sales will be recorded on which side

wages will be recorded on which side of trading account

what is the eqaution for calculating net purchase

Answer explanation

net purchase=purchases-purchase return

Gross profit is incurred when

• Net Sales are equal to Net Purchases

• Net Purchase is more than Net Sales

• Sales are less than cost of goods sold

• Sales exceed the cost of sales

Gross profit is incurred when

• Net Sales are equal to Net Purchases

• Net Purchase is more than Net Sales

• Sales are less than cost of goods sold

• Sales exceed the cost of sales

Which of the following does NOT appear in the Trading Account.

• Closing Stock

• Manager's Salary

• Wages

• Purchase Returns

Return Inwards appearing in the Trial Balance is deducted from

• Purchases

• Sales

• Direct expenses

• none of these