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TRADING ACCOUNT
PROFIT LOSS ACCOUNT
TRADING ACCOUNT
THE PROFIT AND LOSS ACCOUNT OF A TRADING CONCERN IS USUALLY DIVIDED INTO TWO SECTIONS. THE FIRST IS TERMED THE TRADING ACCOUNT WHICH IS SO FRAMED AS TO SHOW THE GROSS PROFIT/LOSS. THE GROSS PROFIT/LOSS AS SHOWN BY THE TRADING ACCOUNT IS TRANSFERRED TO THE SECOND SECTION WHICH IS THE PROFIT AND LOSS
DEBIT SIDE
OPENING STOCK
CREDIT SIDE
SALES
PURCHASES
GROSS LOSS
CLOSING STOCK
GROSS PROFIT
BALANCE SHEET
THE BALANCE SHEET IS A STATEMENT PREPARED WITH A VIEW TO DETERMINE THE EXACT FINANCIAL POSITION OF A BUSINESS ON A CERTAIN FIXED DATE. IT IS PREPARED FROM THE TRIAL BALANCE AFTER ALL THE BALANCES IN THE DIFFERENT LEDGER ACCOUNTS OTHER THAN THOSE PERTAINING TO ASSETS AND LIABILITIES ARE TRANSFERRED TO THE TRADING AND PROFIT AND LOSS ACCOUNT.
AMOUNT RS.
SUNDRY CREDITORS UNPAID EXPENSES CAPITAL/ GEN FUND ADD NET PROFIT OR LESS NET LOSS
SUNDRY DEBTORS INVESTMENTS PREPAID EXPENSES FIXED ASSETS CLOSING STOCK CASH IN HAND CASH AT BANK