The Trading Account is prepared for ascertaining the gross profit. It is debited with opening stock, purchases, and, direct expenses and credited with sales and closing stock. The gross profit is equal to the excess of the credit side total over the debit side total and is shown on the debit side of the Trading Account. The gross profit can also be worked out if the gross amount of sales are known and the rate of gross profit is given. Now if all figures other than the opening stock are available and the gross profit has been worked out with the help of gross profit rate. You can prepare a Memorandum Trading Account and find out the amount of opening stock on the basis of balancing figure