Difference between trading and profit and loss account, Accounting Standards

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.

Posted Date: 4/3/2013 6:25:57 AM | Location : United States







Related Discussions:- Difference between trading and profit and loss account, Assignment Help, Ask Question on Difference between trading and profit and loss account, Get Answer, Expert's Help, Difference between trading and profit and loss account Discussions

Write discussion on Difference between trading and profit and loss account
Your posts are moderated
Related Questions
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

GAAP are usually developed through professional accounting bodies as American Institute of Certified Public Accountants (AICPA) and ICAI that is Institute of Chartered Accountants

AB Limited is a manufacturing entity that runs a number of operations including a bottling plant that bottles carbonated soft drinks. AB has been developing a new bottling process

Q. Define Economic and financial decisions? You most likely will find that of all the business knowledge you have acquired or will learn the study of accounting will be the mos

This is a 2,000 words assignment. There is list of 5 questions. I would love to get it done in 3 days. Could you please let me know whether you are capable of getting it done. Than

WHAT ARE THE AIMS AND OBJECTIVES IN STUDYING THE IMPACTS OF ACCOUNTING STANDARDS IN THE PREPARATION OF FINANCIAL STATEMENTS

Trading account is ready to ascertain the Gross Profit and Loss of a firm; here Gross Profit is the excess of total revenue over cost of goods sold as the credit side of the tradin

Review and discuss what the general rules are for agricultural produce using US GAAP and IFRS.

You must be aware about the most of business are made through cheques these days. It involves the bank whether the firm has opened its own account. Thus when payment is made by che

Accounting like a field of study in its developmental process has evolved a theoretical framework consisting of concepts or principles over period of time. Such concepts enjoy a wi