Closing Entries to Prepare Trading Account
With the completion of an accounting period comes the important activity of preparing the financial statements. The first thing one does in doing this, particularly for those dealing in goods or commodities of buy and sell type, is preparing the Trading Account. It facilitates the establishment of the Gross Profit or Gross Loss arising out […]
What is the Importance of Trading Account in Final Accounts
The Trading Account forms one of the critically important components of a company’s final accounts as it will determine gross profit or loss from its core business activity. It would include the revenues from sales and direct expenses like purchases, wages, and manufacturing costs. In analysing the Trading Account, a business will be able to […]