Question

explain trading and profit and loss account

Answer 1

The trading account tally is prepared to show the trading results of the business, e.g. gross profit earned or gross loss sustained by the business. It records the direct expenses(WAGES,Manufacturing exp) of a business firm.

Profit and loss account is used to calculated Net profit after deducting GROSS PROFIT- INDIRECT EXPENSES LIKE SALARY, TELEPHONE EXP ETC

Answer 2

Trading account is prepared to know the gross profit earned or gross loss incurred in accounting period
Profit and loss account is an account into which all gains and losses are collected in order to ascertain the excess of gains over the losses or vise versa