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Trading account in accounting. It is prepared at the stage of final accounts preparation. The account which is prepared to determine the gross profit or gross loss of a business concern is called trading account. It should be noted that the result of the business determined through trading account is not true result.
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0 commission no hidden fees fast order execution. The trading account shows the result of buying and selling of goods It is prepared to determine the gross profit or the gross loss of a trader. For preparing Trading Account closing entries shall be made in the Journal Proper.
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The true result is the net profit or the net loss which is. Are closed by transferring to the debit side of the Trading Account. Trading activities are mostly related to the buying and selling activities involved in a business.
Trading account is a nominal account in nature. Ad Offer Full Order Ticket Functionality Real-Time Charting Market Calendar wPush Alerts. Sign up for a Free Trial Today.
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