What is trading and profit and loss account?

Trading account is an account which indicates the result of trading activities, such as purchase and sale of products. Profit & loss account is an account, representing the actual profit earned or loss sustained by the business during the accounting period. It is prepared to ascertain net profit for the period.

Trading account reflects the gross profit or loss of the business. Profit & Loss Account shows the net profit or loss earned by the company. 1.

Trading and Profit and loss account The calculation of profit will involve the calculation of both revenue and expenses incurred by the firm over a period of time. In"What we bought during the period: Purchases

Trading account is the first part of this account, and it is used to determine the gross profit that is earned by the business while the profit and loss account is the"Particulars: Amount

Profit and Loss Account (GCSE) The purpose of the profit and loss account is to: A profit and loss account starts with the TRADING ACCOUNT and then takes