Question

Trading account is prepared by?​

Answer 1

ANSWER :

Trading Account is prepared by Business organisations/Business firms a part of Final Accounts.

• Trading Account is an account which is prepared for ascertaining the overall result of Trading, that means, buying and selling of goods.

• Trading Account is prepared to show the result of trading activities, i.e, buying and selling of goods.

• Direct incomes and direct expenses are recorded in the Trading Account.

• Trading Account is a part of Income Statement as well as Final Accounts.

• Gross profit or Gross loss is determined by the preparation of Trading Account.

• Trading Account has two side - Debit side and Credit side.