PPT - Trading account B Com Notes | EduRev

Accountancy and Financial Management

B Com : PPT - Trading account B Com Notes | EduRev

 Page 1


Trading Profit  and Loss 
Account
Page 2


Trading Profit  and Loss 
Account
Income Statement 
•
Statement showing the revenues, 
expenses 
•
To know the Income generated in a period
•
It depicts a business entity's financial 
performance due to operations as well as 
other activities 
Page 3


Trading Profit  and Loss 
Account
Income Statement 
•
Statement showing the revenues, 
expenses 
•
To know the Income generated in a period
•
It depicts a business entity's financial 
performance due to operations as well as 
other activities 
Income Statement
•
Trading Account
•
Profit and Loss account
Page 4


Trading Profit  and Loss 
Account
Income Statement 
•
Statement showing the revenues, 
expenses 
•
To know the Income generated in a period
•
It depicts a business entity's financial 
performance due to operations as well as 
other activities 
Income Statement
•
Trading Account
•
Profit and Loss account
Trading account
•
First section of Income Statement
•
Find out the Gross profit 
Page 5


Trading Profit  and Loss 
Account
Income Statement 
•
Statement showing the revenues, 
expenses 
•
To know the Income generated in a period
•
It depicts a business entity's financial 
performance due to operations as well as 
other activities 
Income Statement
•
Trading Account
•
Profit and Loss account
Trading account
•
First section of Income Statement
•
Find out the Gross profit 
Gross Profit
•
It is the profitability of the goods bought or 
manufactured, sold by the firm
•
Sales – Cost of Goods sold
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