Loading....
Coupon Accepted Successfully!

 

Closing the Trading Account

If the credit side is greater, it means incomes and gains are greater than expenses and losses (nominal accounts) which reflect the profit termed as “Gross Profit”. Such profit is transferred to profit and loss account by debiting trading account and crediting profit and loss account
 

If the debit side is greater, it means expenses and losses are greater than incomes and gains (nominal accounts) which reflect the loss termed as “Gross Loss”. Such loss is transferred to profit and loss account by crediting trading account and debiting profit and loss account.

Proforma of Trading Account





Test Your Skills Now!
Take a Quiz now
Reviewer Name