Thetrading accountshows the result of buying and selling goods. This account determines the gross profit or the gross loss of a trader at the stage of final accountspr… See more

From an accounting perspective, gross profit or gross loss is the difference between sale proceeds of a certain period and the cost of goods sold in the same period. Gro… See more

A trading account has multiple features. A trading account is a nominal account. Also, it is prepared on the last day of an accounting year, and it is the first stage of the final ac… See more

Profit or loss determined through the trading account is not the net result of the business. This means that a question naturally arises: what is the use of preparing … See more

While preparing a tradingaccount, a crucial point must be kept in mind: closing entries are made at the end of each accounting periodto transfer the direct expenses and direct reve… See more