alleryStart learning →Opening stock is Rs 28,000, purchases Rs 40,000, carriage on purchases Rs 3,000, sales Rs 1,00,000 and closing stock Rs 11,000. The gross profit is:
ARs 44,000
BRs 40,000
CRs 37,000
DRs 43,000
Answer & Solution
Correct answer: B. Rs 40,000
1. Total the debit side of the trading account first: opening stock Rs 28,000, purchases Rs 40,000 and carriage on purchases Rs 3,000, which is Rs 71,000.
2. Total the credit side: sales Rs 1,00,000 plus closing stock Rs 11,000, which is Rs 1,11,000.
3. Gross profit is the difference that balances the account, Rs 1,11,000 minus Rs 71,000.
4. That gives a gross profit of Rs 40,000.
5. Option A omits the carriage on purchases, which is the classic slip, since carriage inwards belongs on the debit side of this account.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", Illustration 20_
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