Also Read: Format of Trading Account

Trading account questions for practice

Trading account questions for practice

Question 1
prepare Trading Account from the following particulars for the year ended March 31, 2021:
Purchases ₹2,20,000
Sales ₹4,00,000
Direct Expenses ₹70,000
Closing stock ₹30,000

Gross Profit: ₹1,40,000
Question 2
prepare Trading Account from the following particulars for the year ended March 31, 2021:
Opening Stock ₹56,250
Purchases ₹1,57,500
Sales ₹3,05,000
Wages ₹15,750
Carriage₹5,500
Closing stock ₹45,000

Gross Profit: ₹1,15,000
Question 3
Prepare a trading account of Mr.Rachit for the year ended 31st March 2021:
Opening stock ₹10,000
Purchases ₹1,58,900
Purchases return ₹ 900
Sales 2,62,600
Sales return ₹2,600
Direct expenses ₹5,000
The closing stock was valued at ₹20,000.

Gross Profit: ₹1,07,000
Question 4
Prepare a trading account of Mr.Mohit from the following figures:
Opening stock ₹5,000
Adjusted Purchases ₹12,500
Sales ₹23,600
Return Inward ₹600
Closing stock ₹3,000
Direct expenses ₹5,000

Gross Profit: ₹5,500
Question 5
This information is provided by Mr. Neelesh
Stock on 01.04.2020 ₹ 20,000
During the year Sales was₹ 4,06,000;
Purchases ₹2,94,000;
Carriage Inwards ₹ 8,000;
Clearing charges ₹10,000;
Dock Charges ₹2,000
Sales Return ₹6,000;
Purchases Return ₹ 4,000;
Stock on 31,03.2021was ₹ 30,000.

prepare Trading Account for the year ending31.03.2021.

Gross Profit: ₹ 1,00,000

Trading account questions for practice

Question 6
Prepare a Trading Account from the following particulars for the year ended 31st March 2018
Opening Stock ₹50,000
Purchases ₹1,30,000
Sales ₹3,15,000
Factory rent ₹10,000
Purchases return ₹10,000
Sales return ₹15,000
Wages ₹8,000
Carriage on purchases ₹3,500
Manufacturing Exp. ₹8,900
Custom Duty ₹2,100
Motive power ₹2,000
Dock charges ₹3,000
Coal, Gas, and Water ₹3,000
Factory Manager Salary ₹12,000
Commission  on Purcgase ₹8,000
Value of Closing stock ₹60,000

Gross Profit: ₹ 1,29,500
Question 7
The following are some of the balances extracted from the ledger of Mr.Sudarshan as on 31st March 2021. Prepare a trading account.
Stock 1.4.2021 ₹12,500
Purchases ₹1,00,000
Sales ₹1,50,000
Returns outwards ₹5,000
Returns inwards ₹10,000
Salaries ₹4,400
Wages ₹7,500
Rent ₹2,750
Carriage inwards ₹2,500
Carriage outwards ₹750
Power, coal, gas ₹1,000
Stock on 31.3.2021 was valued at ₹34,500.

Gross Profit: ₹ 56,000
Question 8
Prepare Trading Account for the year ending 31st March 2021 from the following information.
Opening stock ₹1,70,000
Purchases return ₹ 10,000
Sales ₹3,50,000
Wages ₹50,000
Sales return ₹ 20,000
Purchases ₹ 1,50,000
Carriage inward ₹ 20,000
Carriage outward ₹ 12,000
Goods sent on consignment ₹20,000
Closing stock ₹1,60,000

Gross Profit: ₹1,30,000
Note: Goods sent on consignment recorded credit side of Trading Account. 

Question 9
Prepare a trading account of Mr.Arham from the following figures.
Opening stock ₹95,000
Cost of goods sold ₹12,50,000
Sales ₹15,00,000
Closing stock ₹89,000
Direct expenses ₹1,20,000
Gross Profit: ₹2,50,000

Question 10
Prepare a trading account of Mr.Arham from the following figures.
Purchases ₹5,40,000
Sales ₹10,40,000
Salaries & wages ₹3,50,000
Returns outward ₹12,000
Trading expenses ₹8,000
Factory expenses ₹11,000
Carriage inwards ₹8,000
Returns inward ₹40,000
Commission on purchase ₹2,000
Opening Stock ₹60,000
Income tax ₹40,000
Dock Charges ₹10,000
Clearing Charges ₹5,000
Closing stock:  Market value ₹ 1,35,000 Cost Price ₹ 1,30,000

Gross Profit: ₹5,06,000
Note: As per the conservatism principle of accounting, The closing stock is valued at cost price or market price whichever is less.

Trading account questions for practice

Question 11
Calculate the cost of goods sold and gross profit from the following figures.

Opening Stock ₹80,000
Purchases ₹4,40,000
Sales ₹10,40,000
Wages & Salary ₹1,50,000
Returns outward ₹12,000
Office expenses ₹4,000
Factory expenses ₹14,000
Carriage inwards ₹10,000
Returns inward ₹20,000
Dock Charges ₹8,000
Clearing Charges ₹2,000
Packing Charges(Factory) ₹6,000
Packing Charges(Show Room) ₹8,000
Closing stock is valued at ₹ 1,35,000

Gross Profit: ₹ 4,57,000
Question 12
Calculate the gross profit from the following figures.
Cost of goods sold  ₹10,00,000
Gross Profit ratio 20%

Gross Profit: ₹ 2,50,000

Gross Profit= (Cost of goods sold×Rate of Gross profit)/100-Rate of Gross profit

Gross Profit= (10,00,000×20)/100-20
13. prepare Trading Account from the following particulars for the year ended March 31, 2021:

Opening stock ₹15,000
Purchases ₹51,000
Sales ₹74,000
Purchase ₹Returns 2,000
Carriage Inward ₹800
Wages ₹5,200
Closing stock ₹16,500

Gross Profit: ₹ 20,500

Question 14
Prepare a trading account of Mr.Krish from the following figures.
Opening stock ₹30,000
Purchases ₹5,00,000
Sales ₹8,00,000
Excise Duty ₹10,000
Import Duty ₹10,000
Railway Freight ₹8,000
Household Expenses ₹20,000
Salaries & wages ₹50,000
Returns outward ₹10,000
Office expenses ₹14,000
Discount on purchase ₹16,000
Trade expenses ₹18,000
Interest received ₹13,000
Factory expenses ₹11,000
Haulage ₹10,000
Carriage inwards ₹8,000
Returns inward ₹20,000
Discount allowed ₹4,000
Commission ₹2,000
Income tax ₹40,000
Dock Charges ₹2,000
Clearing Charges ₹5,000
Closing stock is valued at
Closing stock:  Market value  ₹ 50,000 Cost Price ₹ 55,000

Gross Profit: ₹ 2,46,000
Note: As per the conservatism principle of accounting, The closing stock is valued at cost price or market price whichever is less.

Question 15
Calculate the gross profit from the following figures.
Net profit for the year  ₹1,25,000
Office expenses ₹24,000
Discount Allowed ₹16,000
Trade expenses ₹15,000
Selling expenses ₹25,000
Administration expenses ₹30,000
Factory expenses ₹25,000
Factory Wages ₹15,000
Commission received ₹15,000
Interest received ₹10,000
Carriage Inward ₹10,000

Gross Profit: ₹ 2,10,000
Note: Gross profit= Net Profit+Indirect Expenses-Indirect Income

Trading account questions for practice