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Please tell me What is the entry this adjustment in treading account
Answers (11)
Best Answer
Hey I've tried solving the problem in your way n I luckily got the right answer too I just gave calculated the purchases and sales taken place during the period jan-mar by adding transactions of March and deducting the transaction before Dec Refer to image for clarity And thanks for introducing me to new way of solving this problem
I think u are trying to solve this question in trading account format. You can only solve inventory questions in trading account format when they give you closing stock of previous year n they ask you to find closing stock of following year end. But when they give closing stock of a month and ask you to find closing stock of inventory after a few months then we cannot solve the problem using trading account only using inventory valuation statement format.
Dharshini Sankar
Hey I've tried solving the problem in your way n I luckily got the right answer too I just gave calculated the purchases and sales taken place during the period jan-mar by adding transactions of March and deducting the transaction before Dec Refer to image for clarity And thanks for introducing me to new way of solving this problem
Ok now I got it thank you so much for this
Dharshini Sankar
Hey I've tried solving the problem in your way n I luckily got the right answer too I just gave calculated the purchases and sales taken place during the period jan-mar by adding transactions of March and deducting the transaction before Dec Refer to image for clarity And thanks for introducing me to new way of solving this problem
I think GP is calculate on 267000 not 264000
Thread Starter
Sejal ShivaniI think GP is calculate on 267000 not 264000
As we are deducting the sales return from gross sales it is already included in stocks so we don't calculate profit margin on gross sales. We do the same while preparing trading account in chaper 7
Dharshini Sankar
As we are deducting the sales return from gross sales it is already included in stocks so we don't calculate profit margin on gross sales. We do the same while preparing trading account in chaper 7
Hope u can understand it if you don't get clarity I can try to explain from different angle