Question

Give one word or term or phrase for each of the following statements.

The type of account wherein purchase and sales Account are included.

Answer 1

The type of account wherein purchase and sales Account are included- Trading Account.

Explanation:
Purchases and Sales A/c are included in the Trading A/c. Purchases are recorded on the debit side, whereas, sales are recorded on the credit side of this account. It is prepared to ascertain the amount of profit or loss resulting from buying and selling of goods. Thus, purchases and sales are included in Trading A/c.