1.

Give three differences between Trading Account and Profit and Loss Account.

Answer»
BasisTrading AccountProfit and Loss A/C
RelationIt is a part of the project and Loss a/cProfit and loss is the main account
NatureTrading Account is prepared to ascertain gross profit or grossProfit and loss is prepared to ascertain net profit or net loss of the business

loss
Transfer of BalanceBalance of Trading Account is transferred to profit and loss accountBalance of profit and loss account is transferred to capital account of the proprietor.



Discussion

No Comment Found

Related InterviewSolutions