Trading Account

 Trading Account

Trading account is a ledger account. It has to be prepared in conformity with double entry principles of debt and credit

The Specimen of Trading Account

 

Trading account for the year ended….......
Particulars	Rs	Rs	Particulars	Rs	Rs
To Opening Stock		XXX	By Sales	XXX
To Purchases	XXX
Less:Purchase Returns	XXX	XXX	Less: Sales Returns	XXX	XXX
To Direct Expenses:			By Closing Stock		XXX
Wages		XXX	By Gross loss c/d (Transferred to P&L A/c)		XXX
Fuel & Power		XXX
Carriage Inwards		XXX
Royalty on production		XXX
Power		XXX
Coal,Water,Gas		XXX
Import Duty		XXX
Consumable Stores		XXX
Factory Expenses		XXX
To Gross profit c/d (Transferred to P&L A/c)		XXX			XXX