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Again the profit and loss account shows the net profit of 12000 the business has made for the accounting period.
Trading and profit and loss account format. Ad Trade Gold Futures CFDs at Plus500. Generally a trading account refers to a traders main account. Different solved problems in trading profit and loss ac in final accounts format for carriage outwards.
Profit and Loss account shows the net profit or net loss of a business. Trading account is a nominal account in nature. Particulars To Gross Loss bd Office and Administrative Expenses.
Trading account is the first step in the process of preparing the final accounts of a companyAs the name suggests it includes all the trading activities conducted by a business to ascertain the Gross ProfitLoss. ZIMSEC O Level Principles of Accounts Notes. Using the net sales from the trading account the business can quickly calculate the net profit percentage as follows.
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This account follows the trading account using value of the gross profit to ascertain the net profit or net loss for a period. The format of a Simple Trading and Profit and Loss Account The Name of the BusinessProprieter NB The exact names and types of expenses and other income will vary from business to business you should take your cue from the examination question Trading and Profit and Loss Account and the Expense accounts. Trading Profit and Loss Account Income Statement for the year ended 3112X5 Sales 67865 Less Cost of Goods Sold.
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