Calculate closing stock from the following :

[Dhanalakshmi]

Calculate closing stock from the following :

	Rs.
Sales	40,000
Purchases	24,600
Returns Inwards	1,000
Returns outwards	2,000
Carriage Inwards	800
Gross profit	16,000

Is it correct that debit balance in the profit and loss account is profit?

[Dhanalakshmi]

Trading Account

No, it is not correct; debit balance in profit and loss account implies loss as expenses are more than the revenue.