Question

The following information relates to Mwangi traders for the month of August
Opening stock Sh.40,000
Purchases Sh.46,000
Carriage in Sh.2100
Closing stock Sh. 22,500
Goods are usually sold at a mark-up of 20%. Prepare a trading account

Answer 1

Mwangi traders Trading a/c As at 31st August
Opening stock	40,000		Sales		78,720
Add purchases	46,000
Add carriage in	2,100	48,100
Cost of goods available for use		88,100
Less closing stock		22,500
Cost of sales		65,600
G.p C/d		13,120
		78,720			78,720