LEDGER BALANCING IE EXAMPLE
FOR OLD BUSINESS
The following are some of the
balancing appearing in the ledger of trader on 31-12-1995. Compute
gross profit taking and closing stock as Rs 12000.
Opening stock 1-1-95 - 6000
Purchases - 48000
Purchases returns - 4000
Sales - 63200
Sales returns - 1600
Wages - 4000
Solution :
Cost of goods sold = Opening
stock + net purchases + Wages – Closing stock
=
Rs.6000 + 44000 + 4000 – 12000
=
Rs 42000
Net sales = Sales – Sales
Returns
= Rs 63,200 - 1600
= Rs 61,600
Gross Profit = Net Sales – Cost
of goods sold
= Rs 61,600 –
42,000
= Rs 19,600
