Since all these accounts show a debit balance in the
trial balance and are all direct expenses, we need to debit the Trading A/c.
Trading A/c Dr.
xxx
To Opening Stock A/c
xxx
To Purchases A/c
xxx
To Direct expenses A/c
xxx
To Sales returns A/c
xxx
(Being transfer of opening stock, purchases, direct
expenses and sales returns to trading A/c)
