Which of the following organization will not prepare Trading A/c but prepares Profit & Loss A/c?

Retailer

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Bank

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Manufacturer who also sales goods

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All of the above

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Solution

The correct option is B Bank
Trading Account is prepared by those organization in which purchase and sale of goods is happening.

Banks do the business of taking deposits from customers and granting loans to the borrowers. Banks does not involve in any trading activity, hence no trading account is prepared by the banks.

Banks prepares Profit & Loss account.

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Similar questions

From the following trial balance of Mr. A. Lal, prepare trading, profit and loss account and balance sheet as on March 31, 2017.

Account Title	Debit Amount Rs	Credit Amount Rs
Stock as on April 01, 2016	16,000
Purchases and Sales	67,600	1,12,000
Returns inwards and outwards	4,600	3,200
Carriage inwards	1,400
General expenses	2,400
Bad debts	600
Discount received		1,400
Bank over draft		10,000
Interest on bank overdraft	600
Commission received		1,800
Insurance and taxes	4,000
Scooter expenses	200
Salaries	8,800
Cash in hand	4,000
Scooter	8,000
Furniture	5,200
Building	65,000
Debtors and Creditors	6,000	16,000
Capital		50,000

Closing stock Rs 15,000.

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