Question

What is trading and profit and loss account?

Answer 1

Trading Account is the first stage in the process of preparing finalaccounts. Trading account shows the gross profit or gross loss during an accounting year. Its main components are sales, services rendered in the credit side of such sales or services rendered in the debit side.

Answer 2

Trading and profit n loss account is a income statement from which gross profit or gross loss and net profit or net loss are calculated.