Question

write the format of trading account???​

Answer 1

Answer:

Opening stock details of raw material, semi-finished goods and finished goods. Closing stock details of raw material, semi-finished goods, and finished goods. Total purchases of goods fewer Purchase Returns. Total sales of goods fewer Sales Returns.

Answer 2

Trading Account

Trading and manufacturing business firms deal in sales and purchases of goods. Therefore, only manufacturing and trading entities prepare the trading account. Service providers do not prepare this.

Advantages of Preparing Trading Account Format

• It is a very important statement from the cost point of view of the goods. By preparing the Trading account entities can take the decision for continuing or discontinuing a particular product. It helps to earn the maximum profit or reduce the losses.
• It is a very important statement from the cost point of view of the goods. By preparing the Trading account entities can take the decision for continuing or discontinuing a particular product. It helps to earn the maximum profit or reduce the losses.With the help of a trading account, Sales tax authorities can easily see the correct purchases and correct sales as per the sales tax return submitted by a business firm.

I hope it helps you bestie....

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