From the following information, prepare Trading Account for the year ended 31st March, 2019:
`{:(,Rs,|,,Rs),("Opening Stock","1,00,000",,"Wages","2,000"),("Purchaese","2,80,000",,"Freight Inwards","3,600"),("Closing Stock","80,000",,"Carriage Inwards","1,000"):}`
Gross Profit on Sales is 20%

Explanation

Let Sales be Rs 100, Gross Profit will be Rs 20
Therefore, Cost of Goods Sold `= Rs 100 - Rs 20 = Rs 80`
When Cost of Goods Sold is Rs 80, then Sales = Rs 100
When cost of Goods Sold is Rs 1, then Sales `= Rs 100//Rs80`
When Cost of Goods Sold is Rs `3,06,600^(**)`, then Sales `= Rs 100//Rs 80 xx Rs 3,06,600 = Rs 3,83,250`

`{:(,,Rs),(.^(**)"Calculation of Cost of Goods Sold",,),("Opening Stock",,"1,00,000"),("Add Purchases",,"2,80,000"),(" Wages",,"2,000"),(" Freight Inwards",,"3,600"),(" Carriage Inwards",,ul("1,000")),(,,"3,86,600"),("Less : Closing Stock",,ul("80,000")),("Cost of Goods Sold",,ul("3,06,600")):}`
Note: Gross Profit is 20% on Sales (i.e., 20/100 or 20/100 or 1/5) `(Rs 3,83,250 xx 1//5 = Rs 76,650) " or " 1//4th` of the cost (i.e., 20/80) `(Rs 3,06,600 xx 1//4 = Rs 76,650)`. It means Gross Profit 1/5th on Sales = 1/4th on Cost