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Format for trading and profit and loss account. Trading and profit and loss accounts are useful in identifying the gross profit and net profits that a business earns. Profit and Loss account shows the net profit or net loss of a business. Trading and Profit and Loss Account.
Ad Trade Gold Futures CFDs at Plus500. Net profit Gross profit Expenses Other income. It is prepared to find out the Net Profitloss of the business for the particular accounting period.
Prepare the trading and profit and loss account of the business for the year ended 31122005 and a balance sheet as at that date. Trading account is based on matching the selling price of goods and services with the cost of goods sold and services rendered. Let your money work for you.
The trading account shows the gross profit or gross loss during the accounting period. Gr oss Profit or Gross Loss After all items of trading are arranged in the prescribed trading account format the account must be balanced to determine loss or profit arising out of selling activities. This account follows the trading account using value of the gross profit to ascertain the net profit or net loss for a period.
Let your money work for you. The format of a Simple Trading and Profit and Loss Account The Name of the BusinessProprieter NB The exact names and types of expenses and other income will vary from business to business you should take your cue from the examination question Trading and Profit and Loss Account and the Expense accounts. The vertical format of P.
The horizontal format of P. Prepare trading and profit and loss account and balance sheet. In India there are basically two formats of PL statements.
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