Trading profit and loss account and balance sheet of a


Trading profit and loss account and balance sheet of a


Oof business keeps various types of financial record to monitor its performance and ensure that taxes are paid. These include cash flow statements, profit and loss accounts and a balance sheet. Final Accounts of sole Traders: show the calculation of profit earned or the lossincurred during the period and the financial position of the business at theend of the period.

Final accountsusually prepared from a trial balance. It shows what the business owns, and amounts owing to thebusiness- the assets and what the business owes, the liabilities and thecapital. While preparing thefinal accounts, there may be some items so far not adjusted. These items are tobe adjusted in the final accounts for calculating the correct profit or loss ofthe business. The usual adjustments in the final accounts are. Expensesowing:These are the expensesincurred during the year but not paid in cash.

Trading account is prepared to ascertain the gross profit or gross loss made by the company during the accounting period. Profit and loss account is prepared to ascertain the net profit or net loss made by the company during the accounting period. Profit and loss account is also called as income statement. Format Of Valance And Profit And Loss Account:-Trading and profit and loss account are generally prepared together and not separately.

There are two formats by which trading and profit and loss account ca.




Trading profit and loss account and balance sheet of a

Trading profit and loss account and balance sheet of a

Trading profit and loss account and balance sheet of a



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