Tag Archives: Trading Account

Closing Entries to Prepare Trading Account

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Before preparing the Trading account, various accounts need to be closed and transferred to the trading account at the end of accounting. Real accounts are transferred to balance sheet and nominal account’s balances are transferred either to Profit and Loss A/c or Trading account. We need to pass some journal …

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Importance of Trading Account

We all know that accounting is directed toward the keeping systematic records of business transactions. These records are prepared with a view to ascertaining the results of financial activities by the business enterprise. This result may be either net profit or net loss. Net profit or net loss is ascertained …

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