What is Trading and Profit and Loss account

Whereas the profit and loss, account determine the net profit or loss for the period. Trading and P&l accounts are used to calculate the gross profit and net profit of the organization.

Explanation:

Trading Account

Trading account is an account which indicates the result of trading activities, such as purchase and sale of products.

Profit & Loss Account

Profit & loss account is an account, representing the actual profit earned or loss sustained by the business during the accounting period.

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