What is Trading Account?


2 Answer(s)


Trading account is nominal account which is prepared at the end of accounting year. Trading account helps to find out gross profit or gross loss during the accounting period. Trading account consists of two sides 'debit and credit' . All direct expenses are debited and direct incomes are credited in trading account.Trading account contains mainly purchase of goods , sale of goods and expenses relating to the daily operation of factory.

An account with a broker that enables an individual or other party to buy and sell securities.