1.

What is thedefinition of traiding accountsand loss account?

Answer»

account: trading account is anominal account.It is a part of profit and LOSS account.All direct expenses are RECORDED or debited to trading account.Profit and loss account: profit and loss account is a NOMINAL account.It is continuation of trading account.All indirect expenses are debited or recorded to profit and loss account.Profit and loss account SHOWS net profit or net loss.



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