define treding account
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A trading account can be any investment account containing securities, cash or other holdings. Most commonly, trading account refers to a day trader's primary account. ... The assets held in a trading account are separated from others that may be part of a long-term buy and hold strategy.
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Trading account is prepared mainly to know the profitability of ‘goods’ bought or manufactured and sold by the businessmen. The difference between the selling price and cost price of the goods is the gross result.
The term ‘goods’ means the goods bought for resale. It does not include assets. If sale proceeds are more than the cost of goods sold, gross profit is made. If sale proceeds are less than the cost of the goods sold, gross loss is incurred.
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