Explain about format of trading and profit and loss account.
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Trading account is part of profit and loss account and records net sales , net purchases , opening and closing stock and all direct expenses like wages ,freight,carriage inward etc gross profit or gross loss is ascertained from trading account
Profit and loss account includes gross profit or gross loss ascertained from trading account and all indirect expense like rent,salaries,advertisements etc. Net profit or net loss is ascertained from profit and loss account
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