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1. Trading account is prepared so as to calculate gross profit or loss, whereas the function of the profit and loss account is to disclose net profit or loss.
2. Trading account deals along with the sales and cost of goods sold that includes direct expenses. But the loss and profit account deals along with indirect expenses as administrative and financial expenses and similar is charged against gross profit and the other revenues.
3. The outcome of the trading account in the form of gross profit or loss is transferred to profit and loss account whereas the result of profit and loss account in the net profit or loss is moved to capital account.
Q. Financial consequences of business decisions? When nowadays college students are polled about their long-term career choice an astonishingly large number respond that they w
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Transfere from U.S GAAP to IFRS case study project
GAAP are usually developed through professional accounting bodies as American Institute of Certified Public Accountants (AICPA) and ICAI that is Institute of Chartered Accountants
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