Top Notch Trading Account Format Class 12

Trading account format for the year contains Particulars Amount Dr Cr Purchases Sales etc.

Trading account format class 12. Activities which generate revenue for the business such as Sales of Services or Goods Closing Stock are shown on the credit side Right whereas activities which are a part of the Cost of Goods Sold such as the purchase of raw material opening stock direct expenses etc. I Prepare profit and loss appropriation account for the year ending 31st March 2013. It is calculated by comparing the net sale with the cost of goods sold COGS.

It is prepared to conform to the rules of double entry. Ad Free Demo Account For Practice. Trading account is prepared to show the gross profit or gross loss for the period.

PROFIT AND LOSS ACCOUNT Horizontal Form for the year ended Dr Cr. The balance of this account discloses the gross profit and gross loss. We transfer the balance of the trading account to the profit and loss account.

Features of Trading Account. Gross profit Sales revenue Cost of goods sold. Prepare Trading Profit and Loss Account Profit and Loss Appropriation Account and Balance Sheet in the prescribed form.

In other words trading account shows total sales total purchases and all direct expenses relating to purchase and sales. The solution will be as follows. The format of trading account after passing the closing entry is as follows.

In this example all accounts are closed and transferred to the trading account. Net profit Net profit Net sales Net profit 12000 100000 12 Trading Profit and Loss Account Format. Get Started Today with FactSet Execute Faster Trades To Boost Your Investment Returns.