Question

Distinguish between Trading Account and Profit and Loss Account

Answer 1

Answer:

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trading ac is related to gross profit and gross loss . ...

and in profit and loss ac.... net profit and net loss will be determined

Answer 2

Answer:

1.

in trading account closing stock is shown in credit side.

in profit and loss account closing stock is not shown.

2. trading account are related to direct expenses

profit and loss account are related to indirect expenses.

3.

trading account is prepared after profit and loss account.

profit and loss account is prepared before preparing trading account.

4.

in trading account gross profit and gross loss are calculated .

in profit and loss account net profit and net loss are calculated.