Question

write the format of trading account?







No Spam :'(​

Answer 1

Answer:

Trading Account contains the following details

Trading Account contains the following details 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.

Explanation:

Trading account is a statement which is prepared by a business firm. It shows the gross profit of business activities during a specific period. It is a part of the final accounts of the entity. In other words, the trading account gives details of total sales, total purchases and direct expenses relating to purchase and sales. Trading account format for the year contains Particulars, Amount, Dr., Cr., Purchases, Sales, etc. In this article, we will see the advantages of a Trading account and Trading account format.

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.

• 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.

Answer 2

Answer:

$\Huge{\textbf{\textsf{{\color{navy}{An}}{\purple{sW}}{\pink{er}}{\color{pink}{:}}}}}$

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.