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- To prepare a trading account, follow these steps:
- Start with the opening balance of stock.
- Calculate the net purchases of the period (purchases – returns).
- Record all direct expenses, such as wages, carriage, freight, fuel, etc.
- Close the temporary revenue and purchases accounts and adjust the inventory accounts using a closing journal entry12.
- Set up a brokerage account by completing an application online and depositing or transferring funds3.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.How to Prepare a Trading A/c?
- Start with the opening balance of stock and place it as the first item on the debit side.
- Calculate the net purchases of the period (purchases – returns) and record them on the debit side as the next item.
www.accountingcapital.com/basic-accounting/tradi…The trading account is prepared by closing the temporary revenue and purchases accounts and adjusting the inventory accounts using a closing journal entry as shown in the example below. Each account is closed and transferred to the trading account. The credit entry to the trading account of 55,000 represents the gross profit for the period.www.double-entry-bookkeeping.com/income-state…Setting up a brokerage account is simple. You can typically complete an application online in under 15 minutes. (In most states, you’ll need to be 18 to open your own account. Here’s how parents can set up a brokerage account for their kids.) Once you've opened the account, you’ll need to deposit or transfer funds.www.nerdwallet.com/article/investing/what-is-how-t… - People also ask
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