Exercise 20: Trading Account

Exercise Overview

Your task in this exercise is to prepare a Trading Account so that you can calculate and show the Gross profit earned using the following information.

Exercise Instructions

You may want to visit the page "The Trading Account" for advice on how to prepare and format the answer to this exercise.

The information you are given to prepare a Trading Account is as follows:

  1. A business has opening stock of clothing on 1 January worth $2,000.
  2. Closing stock of clothing on 31 January was worth $8,500
  3. Sales of clothing in January was $4,500
  4. During the month of January purchases of clothing were as follows:
5 January 100 Shirts @ $15.00 Each
10 January 150 Socks @ $ 7.00 Each
15 January 90 Shorts @  $15.00 Each
25 January 70 Track Suits @  $65.00 Each

Answer to this Exercise

You can obtain an answer to this and all other accounting exercises on this website:

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