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The account which is prepared to determine the gross profit or gross loss of a business concern is called trading account.
Preparation of trading account. Trading account is the first step in the process of preparing the final accounts of a company. Are closed by transferring to the debit side of the Trading Account. Preparation of Trading Account At the end of the financial year or at the end of the financial accounting period an entity prepares the financial accounting statements to know the profit and loss and also the financial position of the business.
Ad Offer Full Order Ticket Functionality Real-Time Charting Market Calendar wPush Alerts. It should be noted that the result of the business determined through trading account is not true result. Ad Get up to 100 Commission Free Trades with No Hidden Fee Trade Minimums.
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In other words the trading account gives details of total sales total purchases and direct expenses relating to purchase and sales. Access Multiple Sources Of Market News Analysis Directly Through Our Platform. Trade FX stocks CFDs and more.
Ad Find and Compare Account Trading online. It is a part of the final accounts of the entity. All trading organ izations prepare trading account as the first step of final accounts.
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