Preparation of Trading Account - SS1 Accounting Lesson Note

The following are transactions for SUN Ltd. for the month of May 2022. You are required to prepare a trading account.

Transactions for SUN Ltd. for the Month of May 2022:
  • On May 1, 2022, SUN Ltd. purchased 100 units of product A for ₦10000. 

  • On May 5, 2022, SUN Ltd. sold 50 units of product A for ₦500. 

  • On May 8, 2022, SUN Ltd. purchased 200 units of product B for ₦50000

  • On May 10, 2022, SUN Ltd. sold 100 units of product B for ₦30000. 

  • On May 15, 2022, SUN Ltd. purchased 150 units of product A for ₦20000. 

  • On May 20, 2022, SUN Ltd. sold 100 units of product A for ₦15000. 

  • On May 22, 2022, SUN Ltd. purchased 50 units of product C for ₦15000. 

  • On May 25, 2022, SUN Ltd. sold 30 units of product C for ₦10500. 

  • On May 28, 2022, SUN Ltd. purchased 100 units of product A for ₦15000. 

  • On May 31, 2022, SUN Ltd. sold 150 units of product B for ₦45000.

 

Trading Account for SUN Ltd. for the Month of May 2022:

Particulars

Amount (₦)

Sales

Less: Cost of Goods Sold

Opening Stock

Purchases

Less: Closing Stock

Cost of Goods Sold

Gross Profit

98000


10000

95000

25000

80000

18000

 

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