How to Prepare a Trading Account: Format and Key Components Explained

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2025-06-12 12:26:59

What is a Trading Account? A trading account is a financial statement prepared by businesses to ascertain the gross profit or loss resulting from trading activities, primarily the buying and selling of goods. It forms the initial segment of the final accounts, preceding the profit and loss account and the balance sheet. The trading account focuses solely on direct revenues and direct expenses,...

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