Trading Account - Concept, Meaning, Importance, Advantages and Format
Trading Account - Concept, Meaning, Importance, Advantages and Format
Meaning of Trading Account: Trading accounting is the first step of final account. The main objective of preparing trading account is to find out gross profit earned or loss suffered during an accounting period. Since, it is a nominal account, all direct expenses are debited and direct incomes are credited. It includes opening stock, purchase and expenses relating to purchase and factory expenses in the deb…
Final Account
Final Accounts
Every company should prepared trading account, profit and loss account, profit and loss appropriation account and balance sheet at the end of accounting period. The profit and loss account is prepared to ascertain earned or loss suffered during an accounting period of time where the balance sheet is prepared to depict the financial position on a particulars date. Final account is the combination of income statement (trading and profit and loss account) and bala…
All Adjustment of Accounts
Accounting Adjustments
Concept of Adjustments: In the previous chapter, we have discussed how the final account. i.e. trading account, profit and loss account, profit and loss appropriation account and balance sheet are prepared with the help of trial balance. The items, which appear in the trial balance, are recorded either in trading account or profit & loss account or profit and loss appropriation account or balance sheet. They have single effect in final account. The …
BALANCE SHEET
Balance Sheet
Meaning of Balance Sheet: Balance sheet is also known as position statement. Balance sheet is a statement of assets and liabilities presented on a given date usually at the end of accounting period to show the financial position of a firm. It obtains assets on one side, and shareholder's equity and liabilities on the other side. It is prepared either in the horizontal or in the vertical form.
Balance sheet is the last step of final account. It is prepared aft…
Educating & empowering people to ditch debt, save money and build real wealth! Now more than ever, people are focused on their finances and prioritizing their financial well-being.
Social Plugin