Trading and profit and loss account explained in most easy way | Final Accounts | Class 11
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- เผยแพร่เมื่อ 23 ม.ค. 2020
- Learn Trading Account, Profit and Loss Account and Balance Sheet in the most easy way possible
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What is Trading Account:
Trading account is prepared to calculate the Gross Profit and Gross Loss from the production of goods and service. In Includes Opening stock, Purchase, Purchase return, sales, Closing stock and direct expense
Gross Profit / Gross Loss is then transferred to the Profit and Loss account
What is Profit and Loss Account
In Profit and Loss Account, we debit all the indirect expense, expense which is not related to production of goods and service and credit other income.
Examples of the profit and loss expense are : Advertisement, Travelling expense, salary , Printing, General expense, Bad debt, Provision for bad and doubtful debt
Profit and loss helps us in deriving the Net profit or Net loss which is then transferred to the Capital Account (i.e. Proprietorship Account)
This chapter comes in CBSE 11 and MBA Accounts.
Final Account with Adjustment Introduction
Trading and profit and loss account explained in most easy way | Final Accounts | Class 11
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13:29
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Next part
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