Items of Trading Account

Items of Trading Account have two types of items credit side items and debit side items
Debit Side Items contains The value of opening stocks of goods (i.e., the stock of goods with which the business was started).
Credit Side Items contains the Total sales made during the period less the value of returns, i.e., net sales.The value of closing stock of goods.

Trading Account

Learning Objectives: Define and explain trading account. (What is trading Account ?) What are the items of a trading account. Prepare the format of trading account. What are advantages of trading accounting? Definition and Explanation: A trading account is an account which contains, ”