Trading Account Word Scramble
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Term | Definition |
Trading Account | The purpose of this account is to find out if the business made a gross profit or gross loss while trading |
Trading Period | Refers to the year the accounts are made for |
Gross Profit | This is the difference between sales and the cost of actual sales, if sales are greater than the cost of sales |
Gross Loss | This is the difference between sales and the cost of actual sales, if the sales are less than the cost of sales |
Net Sales | True value of sales, i.e. sales less sales returns |
Net Purchases | True value of purchases, i.e. purchases less purchases returns |
Sales | The goods sold by the business |
Purchases | The goods bought by the business, which they intend to sell |
Sales Returns | The goods that were returned to the business, sometimes known as returns inwards |
Purchases Returns | The goods returned by the business to its suppliers, also known as returns outwards |
Customs Duty | The tax or duty paid on goods imported from non-EU countries, also known as import duty |
Import Duty | Another name for Customs Duty |
Carriage Inwards | The cost of collection of goods purchased from the supplier |
Cost of Sales | The figure subtracted from net sales to get Gross Profit (or Loss) |
Opening Stock | The stock left over from the previous years' trading, is known as this at the start of the next trading period |
Closing Stock | The stock left at the end of the Trading Period. This figure is calculated by stock-taking. |
Created by:
Under A Paper Moon
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