Trading account is prepared to find out:

(A) Gross profit

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(B) Net profit

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(D) None of these

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Solution

The correct option is A
(A) Gross profit

Answer: (A) Gross profit

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Similar questions

Q. Answer in one sentence.

Why is Trading Account prepared?

State whether the following statement are true or false.

1. Final Accounts are prepared on the basis of Trial Balance.
2. Trading Account is a part of Profit & Loss Account.
3. Profit Loss Account is prepared to find out Gross Profit or Gross Loss.
4. Gross Profit or Gross Loss is transferred to Balance Sheet.
5. An amount of net profit is added to the capital.
6. All indirect expenses are debited to trading account.
7. Balance Sheet is a statement and not an account.
8. Capital account is a personal account.
9. Amount of prepaid expenses appears on assets side.
10. Bank Overdraft is a liability of business concern.

What is the purpose of preparing trading and profit and loss account?

Q. Write the word / term / phrase which can substitute each of the following Statements.

The method in which Trading Account, Profit and Loss Account and Balance Sheet can be prepared.

Q. From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.

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Trading account is prepared to find out:

The correct option is A (A) Gross profit Answer: (A) Gross profit

The correct option is A
(A) Gross profit

Answer: (A) Gross profit