Trading account interview

Yasaswi Gomes new (Finance ) (4477 Points)

10 May 2023  

Hi

 Of you look at cos sales method

Revenue 500

Less purchasez 100

Less opening stock 100

Plus closing stock 100

And this way gross profit will be 400.

But via trading account method 

Revenue 500

Plus Ending stock 100

Total balance 600

Minus purchases 100

Minus opening stock 100

Gives balance c/d 400

My question is can you work out a problem in cos method if they ask you to prepare a trading account?