Question

in financial statements how to do trading profit and loss account

Answer 1

Answer:

A trading account helps in determining the gross profit or gross loss of a business concern, made strictly out of trading activities. Trading involves buying and selling activities. In the trading account, the cost of goods sold is subtracted from net sales for the period to calculate gross profit

Step 1: Calculate revenue. ...

Step 2: Calculate cost of goods sold. ...

Step 3: Subtract cost of goods sold from revenue to determine gross profit. ...

Step 4: Calculate operating expenses. ...

Step 5: Subtract operating expenses from gross profit to obtain operating

$hope \: it \: helps \: you \: mate...$

❣❣