Answers

2016-01-25T19:49:29+05:30
Trading Account
It is the first stage of final accounts.
It shows the gross result (gross profit or gross loss) of the business.
All direct expenses (expenses connected with purchase or production of goods) are considered in it.

Profit and Loss Account

It is the second stage of the final accounts.
It shows the net results (net profit or net loss) of the business.
All expenses connected with sales and administration (indirect expenses) of business are considered.
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2016-01-26T16:21:10+05:30
Trading Account


Profit and Loss Account

1 It is the first stage of final accounts. 1 It is the second stage of the final accounts.
2 It shows the gross result (gross profit or gross loss) of the business. 2 It shows the net results (net profit or net loss) of the business.
3 All direct expenses (expenses connected with purchase or production of goods) are considered in it. 3 All expenses connected with sales and administration (indirect expenses) of business are considered.
4 It does not start with the balance of any account. 4 It always starts with the balance of a trading account (gross profit or gross loss).
5 Its balance (G.P or G.L) is transferred to profit and loss account. 5 Its balance (N.P or N.L) is transferred to capital account in balance sheet.
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difference are given 1st trading and then profit and loss
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