Question

The method in whichTrading Account, Profit and Loss Account and Balance Sheet can be prepared. Answer in a word / phrase / term.

Answer 1

Hey mate✌️✌️


The method in whichTrading Account, Profit and Loss Account and Balance Sheet can be prepared.⤵️⤵️⤵️⤵️


Final Account.

Answer 2

The method which prepares the Trading Account, Profit and Loss Account and Balance Sheet is known as double entry system.

• Under the double-entry system, the financial statements include the Trading Account, Profit & Loss Account and Balance Sheet. Therefore, at the end of the accounting period, these are prepared.
• The double-entry accounting and bookkeeping system means that sums must be reported in at least two accounts for each business transaction.
• The double-entry system therefore allows the amounts entered as liabilities to be equal to the sums entered as credits for all payments.