Why gross profit on gross loss
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Trading account is prepared for calculating gross profit or gross loss. Gross profit or gross loss is the difference between the ‘cost of goods sold’ and ‘sales’. In accounting terms gross profit is the excess of revenue over cost of sales.
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Answer:
Trading account is prepared for calculating gross profit or gross loss. Gross profit or gross loss is the difference between the ‘cost of goods sold’ and ‘sales’. In accounting terms gross profit is the excess of revenue over cost of sales.
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