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CCP102

This document outlines a lesson plan for teaching students how to prepare trading accounts without adjustments. It includes objectives, a recap of key concepts, an example of a trading account preparation, explanations of debits and credits, assignments for students, and a brief quiz. The instructor's goal is for students to learn how to prepare basic trading accounts by debiting expenses and opening stock and crediting sales and closing stock to calculate gross profit or loss.

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© Attribution Non-Commercial (BY-NC)
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43 views

CCP102

This document outlines a lesson plan for teaching students how to prepare trading accounts without adjustments. It includes objectives, a recap of key concepts, an example of a trading account preparation, explanations of debits and credits, assignments for students, and a brief quiz. The instructor's goal is for students to learn how to prepare basic trading accounts by debiting expenses and opening stock and crediting sales and closing stock to calculate gross profit or loss.

Uploaded by

api-3849444
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

DEPARTMENT OF TECHNICAL EDUCATION

ANDHRAPRADESH

NAME : N.Sambaiah
Designation : Head of section
Branch : DCCP
Institute : Suvr & SR GPW, Etm
Year : I year
Subject : Accountancy-I
Subject code : CCP-102
Topic : Final Accounts
Duration : 50 minutes
Sub-topic : Preparation of Trading account
(without adjustments)
Teaching Aids : PPT, Animations
CCP102.123 1
Objectives

On completion of this period, student would be able


to:
 prepare the Trading Account ( Without
adjustments )

CCP102.123 2
Recap

 What are final accounts?


 What is the main objective for preparation of
Trading Account
 List the items that come on the debit side of trial
balance
 List the items that come on the credit side of
Trading Account

CCP102.123 3
Exercise

From the following prepare Trading Account of Ms.SRIRAM


Brothers Madras for the year ending 31-12-07

Stock (1-1-2007) : Rs 5,000


Purchase : Rs 20,000
Purchase returns : 2,000
Sales : 40,000
Sales returns : 3,000
Wages : 6,000
Carriage Inwards : 1,000
Freight : 500
Cartage : 600
Dock &Clearing charges : 400
Stock (31-12-07) : 10,000

CCP102.123 4
Trading account of SRIRAMA Brothers, Madras for the year
ending 31-12-2007
Dr. Cr.
Particulars Amount Particulars Amount
(Rs. Ps) (Rs Ps)
To opening stock 5,000 By Sales 40,000
To purchases 20,000 Less : Returns 3,000
Less: Returns 2,000 37,000
18,000 By Closing stock 10,000
To Wages 6,000
To carriage Inward 1,000
To Freight 500
To Cartage 600
To Dock and Clearing
Charges 400
To Gross profit 15,500
( Transferred to profit and
loss account)
47,000 47,000

CCP102.123 5
Explanation

• Opening Stock : Stock at the beginning of the


year is debited.
• Purchases : Net purchases i.e., Purchase –
Returns is debited.
• Wages : wages are debited.
• Carriage Inward, freight, cartage, Duty clearing
charges - are expenses incurred in relation to
purchases. Hence they are debited.

CCP102.123 6
• Sales : Net Sales (Total sales – returns ) is
credited.
• Closing Stock : Stock at the end of the year was
credited.
• Gross Profit : Total Credited Amount – Total
debited amount. This amount is transferred to
P/L account to find Net Profit.

CCP102.123 7
Summary

 We have prepared Trading account by debiting


opening stock, purchases, wages and other
expenses relating to purchases
 We credited Net sales and Closing stock
 Gross profit is calculated by tallying the Trading
account and Gross Profit is transferred to Profit &
Loss account

CCP102.123 8
Assignment

 Two assignments are given


 The students are expected to complete them by
next class
 They will be discussed in the next class

CCP102.123 9
Assignment 1
Prepare Trading account of Sri Krishna & Company,
Bangalore with the amounts given below for the year
ending 31st June 2007.
Stock (01-07-2006) Rs : 2,500
Purchases : 40,000
Returns Outwards : 2,000
Sales : 65,000
Returns Inwards : 3,000
Wages : 5,000
Freight & Carriage : 2,500
Commission Paid : 1,000
Discount received : 2,000
Duty & Clearing Charges : 1,500
Rent to office : 1,200
Stock (31-06-2007) CCP102.123
: 9,000 10
Assignment 2
Prepare Trading Account for the following accounts of the
SRINIVASA Traders, Vizag as on 31st March 2007.

Stock at commencement
• Raw Materials 8,000
• Partly finished goods 25,000
• Finished goods 12,000 45,000

Purchases 50,000
Sales 90,000
Purchase returns 2,000
Sales returns 4,500
Carriage 4,000
Productive Wages 5,000
Factory expenditure 3,000
Power 2,500
Cartage 3,500
Freight 500
Marine Insurance on Purchase 1,000 contd..
CCP102.123 11
Contd..

Stock at the end (31-03-2007)


• Raw Materials 8,000
• Partly finished goods 20,000
• Finished goods 25,000 55,000

CCP102.123 12
QUIZ

1. Carriage inwards are shown on the


a) Debit side of the trading A/c
b) Credit side of the trading A/c
c) No where
2. Closing stock is shown on the
a) Debit side of the trading A/c
b) Credit side of the trading A/c
c) No where
CCP102.123 13
Summary

 Preparation of trading A/c results in gross profit or


loss
 It is the first step in the preparation of final A/c

CCP102.123 14

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