Trading account is prepared to find out __________.

Gross profit or loss

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Net profit or loss

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Financial position

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Position of the partners

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Solution

The correct option is A Gross profit or loss
Trading account is prepared to find out the direct profit on the product sold. This includes the sales and closing stock as credit item and purchases and direct expenses as debit item. The result of trading account shows gross profit or loss.

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Similar questions

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.

Q. Gross profit or gross loss revealed by trading account is transferred to:

Q. Before a partner retires, reserves created out of profits or balances in profit and loss account must be transferred to the capital accounts of all the partners in ________.

Q. Before a partner retires, reserves created out of profits or balances in profit and loss account must be transferred to the capital accounts of all the partners in -

Q. To ascertain profit or loss on retirement / death of a partner _____________ is prepared.

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Trading account is prepared to find out __________.

The correct option is A Gross profit or lossTrading account is prepared to find out the direct profit on the product sold. This includes the sales and closing stock as credit item and purchases and direct expenses as debit item. The result of trading account shows gross profit or loss.

The correct option is A Gross profit or loss
Trading account is prepared to find out the direct profit on the product sold. This includes the sales and closing stock as credit item and purchases and direct expenses as debit item. The result of trading account shows gross profit or loss.