1.

Give any two differences between ‘Trading Account’ and ‘Profit & Loss Account’.

Answer»

Difference between Trading Account and Profit & Loss Account:

Basis of DifferenceTrading AccountProfit & Loss Account
ExpenseDirect Expenses are debited in this accountIndirect Expenses are debited in this account
ProfitIt is prepared to ascertain gross profit or gross loss.It is prepared to ascertain net profit or net loss.



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