yes, SALES-SALES RETURNS- COST OF GOODS SOLD
A Trading Account is an account that shows the gross profit of or loss of a manufactures or retail buisness. Sales less than the cost of sales. This is an account similar to a traditional account.
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
A Trading Account is a Final and financial statement drawn by a firm at the end of their accounting period showing the relationship that existed between their Sales volume and Purchases and the Gross profit or loss arrived. When Net Sales exceeds the Cost of Sales then there is Gross Profit. However, if the Cost of Sales exceeds the Net Sale(Sales less Return Inwards) then there is Gross loss. A Manufacturing Account is part of the Final accounts drawn by a manufacturing entity before drawing the Trading Account. Since the firm is engaged in the manufacturing or converting of raw materials to finished goods,they express the monetary value of Prime Cost(Direct Materials + Direct Labour + Direct Expense) and Overheads( Sum of all Indirect cost) to determine the cost of Production.
a bar trading account is just like a profit an lose trading account use have sales then you minus less cost of goods sold then you have your opening stock at the starting of the year an then you add purchases an then you minus less closing stock at the end of the year an the balance that you get is called the gross profit.
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
it is added to the cost of sales
Cost of sales is direct cost incurred to manufacture the goods and that's why provided in trading section of trading profit and loss account.
$ $ $ sales return inwards lcogs opening stock purchase return outwards etc
A Trading Account is an account that shows the gross profit of or loss of a manufactures or retail buisness. Sales less than the cost of sales. This is an account similar to a traditional account.
No, return inwards is not a current asset. It is sales returns and comes on the debit side of profit and loss account. otherwise, lessened from the sales on credit side
a bar trading account is just like a profit an lose trading account use have sales then you minus less cost of goods sold then you have your opening stock at the starting of the year an then you add purchases an then you minus less closing stock at the end of the year an the balance that you get is called the gross profit.
A Trading Account is a Final and financial statement drawn by a firm at the end of their accounting period showing the relationship that existed between their Sales volume and Purchases and the Gross profit or loss arrived. When Net Sales exceeds the Cost of Sales then there is Gross Profit. However, if the Cost of Sales exceeds the Net Sale(Sales less Return Inwards) then there is Gross loss. A Manufacturing Account is part of the Final accounts drawn by a manufacturing entity before drawing the Trading Account. Since the firm is engaged in the manufacturing or converting of raw materials to finished goods,they express the monetary value of Prime Cost(Direct Materials + Direct Labour + Direct Expense) and Overheads( Sum of all Indirect cost) to determine the cost of Production.
No, Sales is not permanent account as sales are closed to profit and loss account at the end of fiscal year.
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
[Debit] Sales Return account [Credit] Cash account
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values