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Prepare the trading account and profit and loss account for the year ended 31st December 2005, given the following trial balance and closing stock: Opening Stock: 37,129, Purchases: 180,000, Return In

Accounting

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Here are the financial statements based on the provided trial balance and closing stock information.

Step 1: Prepare the Trading Account
The Trading Account calculates the Gross Profit by matching direct revenues (sales) with direct costs (cost of goods sold).

Trading Account for the year ended 31st December 2005\textbf{Trading Account for the year ended 31st December 2005}

\begin{align*} Opening Stock && 37,129 && Sales && 384,568 \ Purchases & 180,000 && Less: Return Inward & (7,832) \ Less: Return Outward & (10,64

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